DELTALIFE-Annual Report 2016

Annual Report 2016
Annual
Report
2016
Delta Life Insurance Company Limited

(Delta Life : Prosperous Life)
Delta Life
Annual Report
2016
Delta Life Insurance
Delta Life : Prosperous Life Company Limited
Table of Contents
Desctription Page No.
Transmittal Letter 5
Notice of the 31st Annual General Meeting 6
Board of Directors 8
Corporate Management 9
Vision/Goal/Values 10
Key Financial Indicators 11
From the Desk of Chairman 14
Directors’ Report 17
Compliance Certificate on Corporate Governance Guidelines 23
Corportae Governance Copliance Report 26
Certificate of BAPLC 31
Report of the Audit Committee 32
Auditor’s Report 35
Consolidated Financial Statements 39
Financial Statements of Delta Life Insurance Company Limited 49
Notes to the Financial Statements 59
Directors’ Responsibility Statement 98
Certificate of CEO & CFO Under Corporate Governance Guidelines 99
Auditor’s Report and Financial Statements of DLIC Securities Ltd. 101
Proxy Form & Attendance Slip 117
3
Company Limited Delta Life : Prosperous Life
CHRONOLOGY
10 November 1986 Incorporation and Commencement of Business
17 December 1986 Signing of First Policy
February 1988 Launching of Grameen Bima
8 October 1993 Launching of Gono Bima
7 February 1994 Inauguration of Delta Care Hospitalisation Plan
13 September 1995 Listed in Dhaka Stock Exchange Ltd.
6 December 1995 Listed in Chittagong Stock Exchange Ltd.
March 2001 Membership of Global Network for Banking

Innovation in Microfinance (GNBI)
4 January 2003 Gono-Grameen Bima Merged
10 November 2011 Silver Jubilee of the Company
07 July 2013 Incorporation and Commencement of Business of

DLIC Securities Ltd.
4
TRANSMITTAL LETTER
All Shareholders
Bangladesh Securities and Exchange Commission (BSEC)
Insurance Development and Regulatory Authority (IDRA)
Registrar of Joint Stock Companies and Firms (RJSC)
Dhaka Stock Exchange Limited (DSE)
Chittagong Stock Exchange Limited (CSE)
Central Depository Bangladesh Limited (CDBL)
All other Stakeholders
Dear Sir(s),
It is my pleasure to transmit the Annual Report 2016 of Delta Life Insurance Company Limited along with the
Audited Financial Statements for the year ended December 31, 2016 together with the consolidated balance
sheet of its subsidiary company namely DLIC Securities Limited for all concerned.
The Annual Report includes message from the Chairman of the Board of Directors, Directors’ Report and
Financial Statement with relevant notes along with the consolidated statement of its subsidiary company.
I would like to convey my sincere thanks and gratitude to all concerned. This is for your kind information and
record.
With regards,
(Chowdhury Qamrul Ahsan)

Executive Director (HRD & DLTI)
& In-charge, Board Affairs.
5
NOTICE OF THE 31ST ANNUAL GENERAL MEETING

Notice is hereby given that the 31st (Thirty-First) Annual General Meeting of Delta Life Insurance Company
Limited will be held on June 11, 2017, Sunday, at 10:30 A.M. at “Delta Life Tower,” Plot # 37, Road # 90,
Gulshan-2, Dhaka-1212 to transact the following businesses:
AGENDA
1. To receive, consider and adopt the Audited Financial Statements for the year ended 31st December
2016 together with the reports of the Auditors and Directors thereon.
2. To declare dividend for the year ended 31st December 2016 as recommended by the Board of Directors.
3. To elect/ re-elect Director(s) as per Articles of Association of the Company.
4. To appoint Auditor(s) of the Company for the year 2017 and to fix their remuneration.
Dated: Dhaka By order of the Board of Directors

May 21, 2017 Sd/-
(Chowdhury Qamrul Ahsan)
Executive Director (HRD & DLTI)
& In-charge, Board Affairs
Notes:
a) Shareholders whose names appear in the Depository Register/ Share Register on the ‘Record Date’
i.e. May 25, 2017 shall be eligible to attend the 31st Annual General Meeting (AGM) and receive the
Dividend.
b) The Board of Directors recommended Cash Dividend of 20 per cent or Tk.2.00 per share of Tk.10/-
each for the year 2016.
c) In accordance with the Articles of Association of the Company Directors shall retire at the AGM for
the year 2016 and may, if eligible, offer themselves for re-election.
d) A member entitled to attend and vote at the AGM may appoint a proxy who must be a shareholder of
the Company to attend and vote in his/her stead. The “Proxy Form”, duly filled & stamped at Tk.20/-
must be deposited at the Registered Office of the Company no later than 48 (forty eight) hours before
commencement of the AGM.
e) Shareholders bearing BO ID number are requested to update their respective BO ID with 12 Digits
Taxpayer’s Identification Number (e-TIN), Bank Account, address and Mobile Number etc. through
their Depository Participant (DP) before the ‘Record Date’.
f) Shareholders bearing Folio Numbers are requested to submit their 12 Digits Taxpayer’s Identification
Number (e-TIN) to the Share Department of the Company before the ‘Record Date’; failing which
Income Tax at Source will be deducted from cash dividend @ 15% instead of 10% as per Income Tax
Ordinance 1984 under section 54.
g) Depository Participants (DPs) are requested to provide us the detail (Shareholders name, BO ID,
client-wise shareholding position, applicable tax rate and dividend amount) of their margin loan holders
who holds Delta Life shares at the ‘Record Date’, along with the name of the contact person in this
connection, to the Company’s Share Department on or before June 04, 2017. Depository Participants
(DPs) are also requested to provide us with their Bank Account name & number, routing number etc.
h) In case of non-receipt of Annual Report -2016 of the Company sent through courier, Members may
collect the same from the Company’s Share Dept. within June 08, 2017. No additional Annual Reports
will be distributed at the venue of AGM. Soft copy of the Annual Report is available in the Company’s
website: www.deltalife.org
N.B: No gift or benefit in cash or kind shall be paid/ offered to the hon’ble Shareholders in the 31st AGM of
the Company as per BSEC Circular No.SEC/CMRRCD/2009-193/154 dated 24.10.2013 and subsequently
as per Regulation 24 (2) of the Listing Regulations, 2015 of both the Stock Exchanges (DSE & CSE).
6
Board of Directors
&
Corporate Management
Board of Directors
Chairman
Monzurur Rahman
Directors
Aziz Ahmed, FCA, CISA (USA) Independent Director

M. Anisul Haque, FCMA Independent Director
Kazi Fazlur Rahman Independent Director
Suraiya Rahman
Zeyad Rahman
Anika Rahman
Saika Rahman
Nizamul Hoque
Arif Ahmed
Md. Wahid Uddin
8
Corporate Management
Chief Executive Officer (Current Charge)
Adeeba Rahman, ACII, Chartered Insurer (UK)
Additional Managing Director

Sayeed Ahmed, FCA, ACMA, CGMA
Deputy Managing Director

Uttam Kumar Sadhu, FCMA, FCS
Executive Director
Chowdhury Qamrul Ahsan (Retd. Addl. IG of Police)
Dr. Ashraf Uddin
Senior Executive Vice President

Anwarul Haque
Ayan De
Executive Vice President

Md. Abdul Hai
M. Abdullah Saadi
Consultant
Swapan Kumar Sarkar, FCA
Consulting Actuary
Mohammad Sohrab Uddin, PhD, AIA
Auditors
M.J. Abedin & Co
Chartered Accountants
Shafiq Basak & Co. (DLIC Secuities Ltd.)
Chartered Accountant
Bankers
Uttara Bank Ltd. Pubali Bank Ltd. Premier Bank Ltd.
Bangladesh Krishi Bank Ltd. Dutch Bangla Bank Ltd. Sonali Bank Ltd.
Janata Bank Ltd. Rajshahi Krishi Unnuan Bank Citibank N.A.
Mercantile Bank Ltd. Agrani Bank Ltd. Dhaka Bank Ltd.
City Bank Ltd. Rupali Bank Ltd. Bank Asia Limited
Islami Bank Bangladesh Ltd. Southeast Bank Ltd. Jamuna Bank Ltd.
Prime Bank Limited National Bank Ltd. Al-Arafah Bank Ltd.
First Security Islami Bank Ltd. Social Islami Bank Ltd. Standard Chartered Bank Ltd.
9
Values
Ü Teamwork
Ü Respect for all people
Ü Unquestionable integrity
Ü Excellence in everything we do
Ü Speed in servicing
Ü Truthfulness
Vision
Ü We will be the premier life insurance Company in Bangladesh.
Ü We will serve our customers with respect and will provide the best solution for their needs.
Ü We will be a Company with qualified professionals who will work together as a team and serve
with dignity and the highest level of integrity. We believe in excellence and will continously improve
our service and will obtain the loyalty of our customers with service beyond their expectations.
Ü “Adding Value” will be the operative words of our organization.
Goal
Ü Provide financial security to our customers with insurance policies that are most suitable for them.
Ü Make life insurance an easy saving instrument and a profitable one with attractive bonus and
improved customer service.
Ü Collect small savings from the people of our country and invest the accumulated savings in
profitable nation building enterprises.
Key Financial Indicators

(Data relates to “Delta Life Insurance Company Limited”)
(Amount in million BDT unless otherwise stated)

SR YEAR
Particulars
No. 2012 2013 2014 2015 2016
1 First Year Premium Income 810.68 835.76 1,000.43 1,065.76 1,226.52
2 Renewal Premium Income 3,861.92 4,033.77 4,089.36 4,131.04 4,208.30
3 Group & Health Insurance Premium 414.19 477.36 354.49 385.60 451.80
4 Gross premium 5,086.79 5,346.89 5,444.27 5,582.40 5,886.61
5 Reinsurance Premium 57.37 49.95 39.14 34.86 47.00
6 Net Premium (4-5) 5,029.43 5,296.94 5,405.13 5,547.54 5,839.61
7 Retention Ratio (6/4) (%) 98.87 99.07 99.28 99.38 99.20
8 First Year Premium income growth (%) (32.70) 3.09 19.70 6.53 15.08
9 Renewal Premium Income growth (%) 18.05 4.45 1.38 1.02 1.87
10 Gross Premium Income growth (%) 5.26 5.11 1.82 2.54 5.45
First Year Commissions paid for acquisition of life
11 326.00 253.79 346.10 317.11 413.94
insurance business
Second Year Commissions paid for acquisition
12 47.78 53.30 47.91 51.40 61.03
of life insurance business
Third and Later year Commissions paid for
13 132.87 136.10 146.11 142.01 126.20
acquisition of life insurance business
Total commissions paid for acquisition of life
14 506.65 443.19 540.12 510.52 601.17
insurance business (11+12+13)
15 First Year Commissions/First year Premium (%) 40.21 30.37 34.60 29.75 33.75
Second Year Commissions/ Second Year
16 6.51 8.01 8.37 9.57 11.16
Renewal Premium (%)
Third Year and Later Years Commissions/Third
17 4.25 4.04 4.15 3.95 3.45
and Later Year Premium (%)
18 Management Expenses (Actual) 1,407.73 1,543.11 1,566.29 1,564.56 1,700.56
19 Allowable Management Expenses 1,308.50 1,364.40 1,484.00 1,566.99 1,725.30
20 Excess/(Lower) Management Expenses (18-19) 99.23 178.71 82.29 (2.43) (24.74)
21 Excess/(Lower) Management Expenses Ratio (%) 7.58 13.10 5.54 (0.16) (1.43)
22 Overall Management Expenses Ratio (%) 27.67 28.86 28.77 28.03 28.89
23 Renewal Expenses Ratio (%) 16.78 18.62 17.01 14.94 14.41
24 Claims paid 2,842.87 3,476.74 3,946.59 4,245.97 4,887.22
25 Claims/ Gross Premium (%) 55.89 65.02 72.49 76.06 83.02
26 Total Commission Expenses/ Gross Premium (%) 12.39 14.09 14.52 14.41 15.02
27 Investment Income 2,327.64 2,677.56 3,002.76 3,067.64 2,850.29
28 Investment Income/ Gross premium (%) 45.76 50.08 55.15 54.95 48.42
29 Yield on Life Fund (%) 10.81 10.36 9.84 10.14 8.79
30 Conservation Ratio (%) 77.06 79.30 76.48 75.88 75.39
31 Second Policy Year Lapse Ratio (%) by number of policies 38.19 35.49 36.69 39.66 41.19
32 Third Policy Year Lapse Ratio (%) by number of policies 37.66 41.77 41.25 42.25 42.67
33 Fourth Policy Year Lapse Ratio (%) by number of policies 43.55 45.83 49.87 49.82 49.46
34 Fifth Policy Year Lapse Ratio (%) by number of policies 46.90 49.08 52.02 56.02 59.88
35 Sixth Policy Year Lapse Ratio (%) by number of policies 51.94 51.35 54.00 57.27 61.04
36 Second Policy Year Lapse Ratio (%) by Premium amount 51.76 41.84 39.61 42.65 42.03
37 Third Policy Year Lapse Ratio (%) by Premium amount 38.29 37.75 32.26 30.89 31.08
38 Fourth Policy Year Lapse Ratio (%) by Premium amount 45.17 44.46 44.63 40.77 45.54
39 Fifth Policy Year Lapse Ratio (%) by Premium amount 47.79 49.34 41.50 50.70 56.19
40 Sixth Policy Year Lapse Ratio (%) by Premium amount 48.79 50.85 45.42 47.27 60.03
41 Market Price per Share ( in BDT) at year end 4,572.00 266.70 149.90 122.20 100.60
42 Dividend Yield (%) * 4.59 1.34 1.33 1.47 1.99
43 Outstanding Premium as at 31st December 646.61 548.65 537.45 482.45 479.30
44 Total Investment as at 31st December 24,891.42 27,911.36 30,377.00 32,091.44 33,589.73
11
SR YEAR
Particulars
No. 2012 2013 2014 2015 2016
45 Life Fund as at 31st December 26,331.58 28,051.82 30,529.20 33,029.42 34,702.48
46 Total Assets as at 31st December 27,717.29 30,888.76 37,682.30 38,459.61 40,404.26
47 Paid Up Capital as at 31st December 45.00 990.00 1,237.50 1,237.50 1,237.50
48 Paid Up Capital/Total Asset (%) 0.16 3.21 3.28 3.22 3.06
49 Net cash flow from operating activities 630.80 350.06 (447.84) (813.22) (1,113.70)
50 Net cash flow from investing activities (1,222.01) 565.79 1,145.58 (778.42) 1,065.40
51 Net cash flow from financing activities - - (97.24) (233.15) (213.94)
52 Net change in cash and cash equivalent (591.21) 915.85 600.50 (1,824.79) (262.24)
53. First Year and Renewal Premium Income
2012 2013 2014 2015 2016 Description
Year
810.68 835.76 1,000.43 1,065.76 1,226.52 First Year Premium Income
2012 N.A 679.69 590.21 511.27 314.82 Renewal premium out of the policies in 2012
2013 N.A N.A 460.59 392.72 370.48 Renewal premium out of the policies in 2013
2014 N.A N.A N.A 482.19 511.36 Renewal premium out of the policies in 2014
2015 N.A N.A N.A N.A 471.63 Renewal premium out of the policies in 2015
N.A= Not Applicable
54. Number of First Year and Renewal Policies

2012 2013 2014 2015 2016 Description
Year
0.21 0.18 0.20 0.20 0.21 Number of new policies issued
Number of policies renewed out of the policies
2012 N.A 0.16 0.13 0.11 0.07
issued in 2012
2013 N.A N.A 0.10 0.08 0.07
issued in 2013
2014 N.A N.A N.A 0.09 0.09
issued in 2014
2015 N.A N.A N.A N.A 0.10
issued in 2015
N.A= Not Applicable
* For a period of 8 (eight) years (2005-2012)
12
From The Desk of Chairman

Bismillahir Rahmanir Rahim. wemwgjøvwni ivngvwbi ivwng
Respected Shareholders, m¤§vwbZ †kqvi‡nvìviMY
Assalamualaikum, Avm&&mvjvgy AvjvBKzg
I am pleased to welcome you all to the 31st. Annual †Wj&Uv jvBd Bbmy¨‡iÝ †Kv¤úvwb wjwg‡UW Gi 31Zg evwl©K
General Meeting of Delta Life Insurance Company
Limited and to share with you the Annual Report of mvaviY mfvq Avcbv‡ì mevB‡K mvì Awfb›`b| 2016
the Company for the year 2016. I would also like to mv‡ji evwl©K cÖwZ‡e`b Avcbv‡ì Kv‡Q †ck Ki‡Z †c‡i
share with you the Company’s performance during Avwg Avbw›`Z| GB eQ‡i Avgv‡ì †Kv¤úvwb Kx AR©b K‡i‡Q
the year and some of the challenges we face going Zv Avcbv‡ì‡K AeMZ Ki‡Z PvB| GKB mv‡_ Avgv‡ì
forward. AMÖhvÎvi †ÿ‡Î †h mKj P¨v‡j‡Äi gy‡LvgywL n‡ev, †m wel‡qI
Overview Avcbv‡ì mv‡_ Av‡jvKcvZ Ki‡ev|
We are focused on five drivers as we move into the mvgwMÖK wPÎ
future: 1. Providing Quality Service to our customers.
2. Increasing the number of customers we provide fwel¨r AMÖhvÎvq Avgiv cvuPwU PvwjKvkw³i Ici †Rvi w`w”Q:
insurance policies on a year on year basis. 3. 1. MÖvnK‡ì ¸YMZ gvbm¤úbœ †mev cÖ`vb| 2. cÖwZ eQi
Improving the efficiency and performance ability exgvi AvIZv cÖmv‡ii gva¨‡g MÖvnK msL¨v e„w×| 3. gvVKg©x
of our agents and back office service providers. I `vßwiK mnvqK †mev cÖ`vbKvix‡ì Kg©`ÿZv I mÿgZvi
4. Leveraging technology and other channels of gv‡bvbœqb| 4. eëmvwqK `ÿZv e„w×i j‡ÿ¨ cÖhyw³ I Ab¨vb¨
increasing business efficiency. 5. Increase earnings
with the best investment of our Life Fund takas in gva¨‡gi eënvi| 5. wewb‡qvM SyuwK h_vm¤¢e Kwg‡q Avgv‡ì
an environment of rationalized risk management so jvBd dv‡Ûi m‡e©vËg eënvi wbwðZ K‡i wewb‡qvM Avq e„w×
that we can give maximum bonus benefits to our Kiv hv‡Z exgv MÖvnK I †kqvi‡nvìvi‡ì AwaK †evbvm I
policyholders and dividends to our shareholders. jf¨vsk cÖ`vb Kiv hvq|
We have faced major challenges in the past and in AZxZKv‡j I 2016 mv‡j Avgiv A‡bK eo eo P¨v‡jÄ †gvKvwejv
2016, and continue to face them now in 2017. I will K‡iwQ| 2017 mv‡jI Avgv‡ì †m¸‡jv †gvKvwejv Ki‡Z n‡”Q|
share some of these challenges with you.
G wel‡q Avwg Avcbv‡ì wKQz AeMZ Ki‡Z PvB|
A major portion of the income of life insurance
companies comes from deposits in treasury bonds Rxeb exgv †Kv¤úvwbi wmsnfvM wewb‡qvM Avq Av‡m †UªRvwi
and bank deposits. In 2016, the life insurance eÛ I e¨vsK AvgvbZ †_‡K| 2016 mv‡j evsjv‡`‡k Rxeb
industry in Bangladesh faced continued pressure exgv wkí AbeiZ Pv‡ci gy‡LvgywL n‡q‡Q wbgœ my‡ì nv‡ii
from low-interest rates, with the 10-year Treasury Kvi‡Y| 10 eQi †gqvw` †UªRvwi e‡Ûi my‡ì nvi ¯§iYKv‡ji
yield hitting an all-time low of 6.89 percent. It is
unlikely to become much better during 2017. That
g‡a¨ me©wbgœ 6.89 kZvs‡k †b‡g G‡m‡Q| 2017 mv‡j G
makes it difficult for insurance companies to generate Ae¯’vi DbœwZi my‡hvM LyeB Kg| d‡j exgv †Kv¤úvwb¸‡jvi
attractive income from safe investments like treasury Rb¨ †UªRvwi eÛ I e¨vsK Avgvb‡Zi gZ wbwðZ wewb‡qvM
bonds and bank deposits. †_‡K Avq Kiv LyeB KwVb n‡q ùvwo‡q‡Q|
14
Based upon data from different life insurance wewfbœ exgv †Kv¤úvwb¸‡jv †_‡K cvIqv Z‡_ï Dci wfwË K‡i
companies, the Insurance Development &
evsjv‡`‡ki exgv Dbœqb I wbqš¿Y KZ©…cÿ (AvBwWAviG)
Regulatory Authority (IDRA) of Bangladesh cites that
the first-year lapse rate for insurers in Bangladesh Rvwb‡q‡Q, weMZ eQi evsjv‡`‡k cÖ_g el© Zvgvw` exgvi nvi
was in the range of 60-70 percent. This is an wQj 60-70 kZvsk| GB nvi we‡k¦i A‡bK †`‡ki Zzjbvq
abysmally high figure, a figure that is significantly †ewk| fvi‡Z GB nvi 10-15 kZvsk, kÖxj¼vq 40 kZvsk,
higher than in other countries of the world. The rate
is 10-15 percent in India, 40 percent in Sri Lanka cvwK¯Ív‡b 45 kZvsk, nsKs‡q 10-20 kZvsk| DbœZ †`‡k
and 45 percent in Pakistan. Hong Kong has a lapse GB nvi AviI Kg| 2016 mv‡j nq‡Zv GB cwiw¯’wZi wKQzUv
rate of 10-20 percent. The rate is even lower in the DbœwZ n‡q‡Q|
developed world. The lapsed rates could perhaps be
a little better in the industry during 2016. †emiKvix †Kv¤úvwb¸‡jv MÖvgvÂ‡j exgv cwjwm wewμ Ki‡Q
Private companies are selling policies in rural areas, †hLv‡b gvby‡li exgv m¤ú‡K© h‡_ó Ávb †bB| exgv GL‡bv
where people don’t have much knowledge about mgv‡Ri weËkvjx †kÖwYi Kv‡Q †mfv‡e †cŠQv‡Z cv‡iwb|
insurance. Insurers are still unable to tap the richer †ewkifvM †emiKvwi exgv †Kv¤úvbx¸‡jv‡Z `ÿ Rbe‡ji Zxeª
segments of society. This is a sentiment shared by
most of the private life insurance companies. The
¯^íZv i‡q‡Q|
insurance sector also faces a severe shortage of
Mo g~j gy`ªvùxwZ (Lv`¨ I R¡vjvwb ewnf©~Z) wKQzUv K‡g‡Q|
skilled manpower.
2016 mv‡ji wW‡m¤^‡i gy`ªvùxwZ wQj cÖvq 7.6 kZvsk| G
Average core inflation (non-food, non-fuel), a †_‡K †evSv hvq, cÖwZK‚j cwi‡e‡k gy`ªvùxwZ evo‡Z cv‡i|
traditional measure of underlying long-term inflation,
has gone down but remains still elevated at around gy`ªvùxwZi Kvi‡Y gvby‡li mÂq K‡g hvq| ZLb exgv I
7.6 percent in December 2016, indicating inflation Ab¨vb¨ wewb‡qvM Kivi cÖeYZv `‡g hvq|
can pick up if buffeted by adverse shocks. Inflation
tends to bite into savings and the propensity to cwiKíbv gš¿x G GBP Gg gy¯Ídv Kvgvj e‡j‡Qb, 2015-16
invest in insurance policies and other investment A_© eQ‡i evsjv‡`‡ki evwl©K wRwWwc (†gvU †`kR Drcv`b)
instruments. cÖe„w×i nvi wQj 7.11 kZvsk, Avi gv_vwcQz Avq wQj 1,465
The Planning Minister AHM Mustafa Kamal has Wjvi (gv_vwcQz gvwmK Avq cÖvq 9,767 UvKv)| wek¦ e¨vs‡Ki
said that the annual GDP (gross domestic product) wnmve Abyhvqx 2017 mv‡j evsjv‡`‡ki m¤¢ve¨ cÖe„w×i nvi
growth rate of Bangladesh was 7.11% in the last
n‡e 6.8 kZvsk|
2015-16 fiscal year (FY16) and the per-capita
income had surged to $1465, (per-capita-income 2016 mv‡j Avgiv hv AR©b K‡iwQ
of approximately taka 9,767 per month). As per the
estimation of World Bank GDP of Bangladesh would bvbv P¨v‡jÄ _vKv m‡Ë¡I 2016 mv‡ji wW‡m¤î gv‡mi g‡a¨
be 6.80% in the year 2017.
Avgv‡ì jvBd dvÛ †e‡o ùvovq 3,475 †KvwU UvKv hv 2015
What we achieved in 2016 mv‡ji wW‡m¤^‡i wQj 3,304 †KvwU UvKv| A_©vr, GB GK eQ‡i
Despite the challenges, our life fund grew to Avgv‡ì jvBd dv‡Ûi cÖe„w×i nvi wQj 5.16 kZvsk hwÌ
TK. 3,475 crores by December 2016 from Tk. Avgiv wecyj cwigvY exgv `vwe cwi‡kva K‡iwQ| 2016 mv‡j
3,304 crores as at December 31, 2015, a decent exgv `vwe cwi‡kv‡ai cwigvY 488.72 †KvwU UvKv| 2015
growth of 5.16%., although we paid massive
insurance claims to our policyholders amounting
mv‡j 424.60 †KvwU UvKv, 2014 mv‡j 394.66 †KvwU UvKv,
to Tk. 488.72 crores in 2016, Tk. 424.60 crores 2013 mv‡j 347.67 †KvwU UvKv, 2012 mv‡j wQj 284.29
in 2015, Tk. 394.66 crores in 2014, Tk. 347.67 †KvwU UvKv| GKB mg‡q Avgv‡ì wcÖwgqvg Avq wQj wbgœiƒc:
crores in 2013, Tk. 284.29 in 2012 and 229.67 in 2016 mv‡j 588.66 †KvwU UvKv, 2015 mv‡j 558.24 †KvwU
2011. We earned a total premium income of Tk.
588.66 crores in 2016, Tk. 558.24 crores in 2015, UvKv, 2014 mv‡j 544.43 †KvwU UvKv, 2013 mv‡j 534.69
Tk. 544.43 crores in 2014, Tk. 534.69 crores in †KvwU UvKv, 2012 mv‡j wQj 508.68 †KvwU UvKv|
2013, Tk. 508.68 crores in 2012.
2016 mv‡j Avgv‡ì wewb‡qvM I Ab¨vb¨ Avq n‡q‡Q 291.94
Our investment and other income amounted to Tk. †KvwU UvKv, 2015 mv‡j 312.79 †KvwU UvKv I 2014 mv‡j
291.94 crores in 2016, Tk. 312.79 crores in 2015
and Tk. 303.48 crores in 2014. The drop in the 303.48 †KvwU UvKv| Z‡e †UªRvwi I e¨vsK Avgvb‡Zi my‡ì
income in 2016 is mostly attributable to the decrease nvi K‡g hvIqvi Kvi‡YB 2016 mv‡j Avgv‡ì wewb‡qvM Avq
in treasury and bank interest rates. K‡g‡Q|
15
These achievements were possible because we GB mdjZvi cÖavb KviY wQj Avgv‡ì mKj Kg©x‡ì K‡Vvi
worked hard and had a clear and relatively simple
long-term strategy for the Company: to grow with a
cwikÖg Ges DbœZgv‡bi MÖvnK †mev cÖ`vb Kivi evwYwR¨K
focus on superior service to policyholders and clear cwiPvjbvi †KŠkj|
communication with all related employees and well-
wishers of the Company to achieve these successes. D‡jøL¨, Uvbv wØZxq eQ‡ii g‡Zv BgvwR©s †μwWU †iwUs wjwg‡UW
Avgv‡ì AAA †iwUs w`‡q‡Q|
We have been rated AAA by Emerging Credit Rating
Ltd. for the second consecutive year. fwel¨r cwiμgv
Looking forward Avgiv MÖvnK‡ì wbw`©ó mg‡qi g‡a¨ exgv`vwe cwi‡kva Ki‡Z
Our balance sheet is a formidable competitive
A½xKvive×| kw³kvjx e¨v‡jÝ wkU, gReyZ A_©‰bwZK wfwË
advantage in a business where our financial I wbivcËv _vKvq GB A½xKvi c~iY Avgv‡ì c‡ÿ m¤¢e|
strength and security equate to our ability to back Avi †hgbUv Avwg MZ eQi e‡jwQjvg, Avgiv AvZ¥wek¦vm wb‡q
the promise we make to pay every single claim of fwel¨‡Zi w`‡K ZvKvB|
our policyholders in a timely manner. As I said last
year, we look to the future with confidence. Avgv‡ì jÿ¨ n‡”Q evsjv‡`‡ki RbMY‡K ¸YMZ gvbm¤úbœ
Our strategy is to provide the people of Bangladesh exgv‡mev cÖ`vb Kiv| jvBd dv‡Ûi m‡e©vËg wewb‡qvM wbwðZ
quality insurance, prompt service, and the best Kiv, hv‡Z exgv MÖvnK‡ì m‡e©v”P †evbvm Ges †kqvi‡nvìvi‡ì
investment returns on our Life Fund so that we can m‡e©v”P jf¨vsk †Ìqv hvq| GKB m‡½, †Kv¤úvwbi †UKmB
pay our policyholders the highest bonuses and our
shareholders the best dividends while ensuring
cÖe„w× wbwðZ Kiv| GB †KŠk‡ji m‡½ mvgÄm¨ †i‡L Avgiv
sustained growth for the Company. In conformity mgwš^Z Z_¨cÖhyw³ eë¯’v M‡o Zz‡jwQ, hvi gva¨‡g MÖvnK‡ì
with our strategy, we have acquired and customized DËg †mev cÖ`vb Kiv Ges `ªæZZvi m‡½ eëmv cwiPjbv Kiv
an integrated IT system that will enable us to provide m¤¢e| mdUIq¨viwU m¤úªwZ cÖeZ©b Kiv n‡q‡Q| exgv cÖwZwbwa
better service to our customers and help control
and speed up all aspects of doing business. The I mswkøó `vßwiK Kg©KZ©v-Kg©Pvixe„›`‡K h_vh_ cÖwkÿY
software is being rolled out now and our agents and †Ìqv n‡”Q|
back office personnel, who will use the system, are
being trained adequately. Avgv‡ì exgv cÖwZwbwa I mswkøó `vßwiK Kg©KZ©v I
Kg©Pvixe„‡›ì `ÿZv evov‡Z mviv eQiB bvbv cÖwkÿY Kg©m~wPi
We have put in round the year training programs for
our agents and back office employees to enhance
Av‡qvRb Kiv n‡”Q| Kvh©Kifv‡e c‡Yï cÖPvi I m¤¢ve¨ exgv
their skill levels. We have also created a marketing MÖvnK‡ì ØvicÖv‡šÍ exgv‡mev †cŠ‡Q w`‡Z Avgiv m¤úªwZ GKwU
department to brand our products and reach out to gv‡K©wUs wefvM Ly‡jwQ|
potential policyholders in a more effective manner.
cwi‡k‡l hviv 2016 mv‡j Avgv‡ì †Kv¤úvwbi AMÖMwZ‡Z
I conclude with sincere thanks to everyone who Ae`vb †i‡L‡Qb, Zuv‡ì mKj‡K abëv` Rvbvw”Q| GB my‡hv‡M
has contributed to our company in the year 2016. I
take this opportunity to give thanks to the Insurance Avwg exgv Dbœqb I wbqš¿Y KZ©…cÿ (AvBwWAviG), †iwR÷«vi
Development and Regulatory Authority (IDRA) of Ae R‡q›U ÷K †Kv¤úvwb A¨vÛ dvg©m (Avi‡RGmwm), evsjv‡`k
Bangladesh, Registrar of Joint Stock Companies and wmwKDwiwUR A¨vÛ G·‡PÄ Kwgkb (weGmBwm) XvKv Ges
Firms (RJSC), Bangladesh Securities and Exchange
Commission (BSEC), Dhaka and Chittagong Stock
wPUvMvs ÷K G·‡PÄ Ges †m›U«vj wW‡cvwRUwi Ad evsjv‡`k
Exchanges and the Central Depository of Bangladesh wjwg‡UW (wmwWweGj), Avgv‡ì e¨vsKvi, mieivnKvix, msev`
Ltd. (CDBL), the company’s Banks, Vendors, the gva¨g I Ab¨vb¨ eëmvqx Askx`vi‡ì‡K abëv` RvbvB|
Press and Media and other business partners. I am GQvov Avgv‡ì †Kv¤úvbxi AMÖMwZ‡K mg_©b †èvi Rb¨
also thankful to our valued policyholders, honorable
shareholders, all employees of the Company and Avwg Avgv‡ì g~jëvb exgv MÖvnK, m¤§vwbZ †kqvi‡nvìvi,
all stakeholders for their support in making the †Kv¤úvwbi mKj Kg©KZ©v-Kg©Pvixe„›`‡K abëv` RvbvB|
Company financially successful.
Monzurur Rahman gbRyiæi ingvb

Chairman †Pqvig¨vb
16
Directors’
Report
Directors’ Report 2016

To the Shareholders of Delta Life Insurance expenses have been reduced with earnest
Company Limited effort and are lower than the allowable limit
The Directors have pleasure in presenting the prescribed by the Insurance Act. 2010 by
Annual Report 2016 along with the Audited Financial TK. 2.47 crore.
Statements of Delta Life Insurance Company Limited 7. Life insurance fund: The life insurance
for the financial Year Ended December 31, 2016. fund has increased from Tk.3304.41 crores
The Consolidated performance of the company and
in December 2015 to TK. 3475.03 crores
its subsidiary has been referred to as required.
in December 2016; that is an increase of
Highlights of our Operations: 5.16%.
1. Gross Premium: During 2016, first year life 8. Claims: Total Claims paid during the year
insurance premiums collected amounted to increased from Tk. 424.60 crore in 2015 to
TK. 122.65 crores; for 2015, it was TK. Tk. 488.72 crore in 2016, that is 15.10%
106.58 crores. For the same periods,
more during the year.
renewal premiums collected were TK
420.83 crore and TK.413.10 respectively. Appointment of Statutory Auditors:
Total gross premiums including Group and
The existing Statutory Auditor of the Company M.
Health insurance premiums collected during
2016 amounted to TK.588.66 crores. J. ABEDIN & CO., Chartered Accountants have
completed one year of appointment as Statutory
2. Investment and other income: This Auditor and have expressed their willingness to be
declined from TK 312.79 crores in 2015 to
reappointed for the year 2017. The Board of Directors
TK. 291.94 crores in 2016.
recommends the appointment of M. J. ABEDIN &
3. Total Income: Total income increased from CO., Chartered Accountants as the Statutory Auditor
TK.867.54 crores in 2015 to TK.875.90 for the aforesaid period subject to the approval by the
crores in 2016. shareholders in the 31st Annual General Meeting.
4. Yield on investment: Average rate of Dividend:
interest earned during the year 2016 is
8.90% as compared to 10.26% (FY 2015). Out of the surplus available for shareholders as
certified by the Actuary, Cash Dividend was proposed
5. Total outgoings: Tk.659.38 crores. This
includes payment to policyholders (claims by the Board of Directors subject to the approval of
etc.), commission and other allowances the shareholders at the 31st Annual General Meeting
paid to development staff and officers, and for the year 2016 as under:
management expenses. Cash Dividend at the rate of 20% for each share of
6. Expenses (Parent company): Management Tk. 10 each to the tune of Tk. 247,500,000 on the
paid up capital of Tk. 1,237,500,000.
Graphical Presentation of Business Performance

293.39
280.91
273.08
258.75
250.09
247.20
238.77
235.90
588.66
228.21
558.24
220.06
544.43
534.69
508.68
488.72
424.60
394.66
347.67
284.29
Group & Health Claim

GN-GRB Premium
Ordinary Life
47.73
45.18
41.42
38.56
35.45
(Taka in Crore)
(Taka in Crore)
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Premium Income Premium & Claim
18
Five Years’ Financial Highlights (Consolidated):

Amount in Crore Taka
Particulars 2016 2015 2014 2013 2012
First Year Premium 122.65 106.58 100.04 83.58 81.07
Renewal Premium 420.83 413.10 408.94 403.38 386.19
Group Insurance Premium 27.55 24.12 24.05 32.92 25.36
Health Insurance Premium 17.63 14.44 11.40 14.81 16.06
Gross Premium 588.66 558.24 544.43 534.69 508.68
Investment Income 288.77 310.13 300.92 267.98 232.76
Claims 488.72 424.60 394.66 347.67 284.29
Management Expenses
88.39 80.43 79.05 75.36 66.77
a) Commission
b) Admin. Expenses 82.27 76.52 74.77 76.61 74.01
Total Management Expenses (a+b) 170.66 156.95 153.82 151.97 140.78
Assets 4,065.31 3,850.64 3,771.42 3,088.94 2,771.73
Life Fund 3,475.03 3,304.41 3,053.44 2,805.22 2,633.16
Claims to Premium (%) 83.02 76.06 72.49 65.02 55.89
Management Expenses to Premium (%) 28.99 28.12 28.25 28.42 27.68
21 bonus
shares
Cash 11%
(Stock divi-
Dividend on face value of share 20% Cash 18% Cash 20% Cash Stock 25%
dend)
(4:1)
for each share
of Tk. 10
2016
20
2015
20
3475.03
3304.41
3053.44
2014
20
2805.22
2633.16
4065.31
2013
20
3850.64
3771.42
2012
20
3088.94
Premium
Life Fund
2771.73
534.69
544.43
558.24
588.66
508.68
(Taka in Crore)
(Taka in Crore)
2012 2013 2014 2015 2016
Premium & Life Fund Assets
19
Contribution to National Exchequer: Going Concern:

During the year under report, Delta Life Insurance The Board of Directors has reviewed the Company’s
Company Ltd. has deposited 21.77 crore to the business plan and is satisfied that the Company
Government Exchequer as corporate income tax, has adequate resources to continue its operations
stamp duty and VAT. in the foreseeable future. Accordingly, the Financial
Statements are prepared based on the going
Information Technology:
concern concept.
DLICL has almost completed the development and
implementation of country’s first integrated Policy
Compliance with Laws and Regulations:
Administration System to provide better services to The Company was not engaged in any activities
our customers along with the well-known Financial contravening the laws and regulations. All those
Application System from Oracle for running the
responsible for ensuring compliance with the
financial accounting and HR related operations.
This integrated IT system will rationalize the work provisions in various laws and regulations did so
flow creating superior efficiency and output. DLICL within the stipulated time.
has also invested in a world class Data Center with Statutory Payments:
offsite data backup facility to prevent loss of data
from fires and other accidents and calamities. The Directors, to the best of their knowledge and
belief, are satisfied that all statutory payments in
Corporate Governance Compliance Statement:
relation to employees and the Government have
Delta Life Insurance Company Limited complied with been made to date.
all the requirements of Corporate Governance as
required by the Bangladesh Securities and Exchange Compliance with Laws and Regulations:
Commission. Accordingly, Corporate Governance The Company was not engaged in any activities
Compliance Report is shown in Annexure I of this contravening the laws and regulations of Bangladesh
report.
as applicable to life insurance companies. All those
Further in compliance with the requirement of the responsible for ensuring compliance with the
Bangladesh Securities and Exchange Commission provisions in various laws and regulations did so
(BSEC) notification dated August 7, 2012, M/S within the stipulated time.
K. M. Hasan & Co. Chartered Accountants issued
the Corporate Governance Compliance Certificate Significant Variance over the Last Years
which is appended herewith. (Page-23) Operating Result:
Credit Rating: Any significant deviations from last year in the
operating results of the Company have been
Delta Life is rated ‘AAA’ for the second consecutive
highlighted in the report and reasons thereof have
year. Emerging Credit Rating Ltd. reaffirms ‘AAA’
in its latest rating done based on this Company’s been explained.
performance. It is the first and only Life Insurer in Attendance of Board of Directors’ Meeting – 2016:
Bangladesh to achieve this highest credit rating.
Attendance by the Directors in the Board Meetings
Internal Control:
are summarized and given on page-25. The company
The systems of internal controls were sound and only pays a meeting fee to its Directors. Details are
were implemented and monitored effectively. shown in the aforesaid page of this report.
Human Resources: The pattern of Shareholding as on December 31, 2016:
The Company has given more stress to develop Shareholding patterns of the Company as at the end
management skills to suit today’s business of the year 2016 is shown on page-24 of this report.
environment. Various training programs and
workshops were carried out during the year. The Directors’ Responsibility Statement:
management and employee relationship in the The Statement of the Directors’ Responsibilities
company was excellent throughout the year.
for financial statements is given on page-98 of this
report.
20
Life Fund Management

232.76
267.76
300.28
306.76
285.03
18.95% Expenses
19.26%
Provision
3.90%
Divident
2.52%
(Taka in Crore)
Claims
55.36%
2012 2013 2014 2015 2016

Analysis of Utilisation of Income in Percentage
Investment Income
The segment-wise or product wise (Excluding Application of IAS/BAS & IFRS/BFRS:

DLIC Securities Ltd.) Performance: International Accounting Standards (IAS)/Bangladesh
Segment-wise or product wise operational result and Accounting Standards (BAS)/ International Financial
capital employed based on the Financial Statements Reporting Standards (IFRS)/Bangladesh Financial
is furnished in the Life Revenue Account on page-52 Reporting Standards (BFRS), as applicable in
of this report. Bangladesh, have all been followed in preparation
of the financial statements and any departure there-
Extra-Ordinary Events: from has been adequately disclosed.
No events of extra ordinary gain or loss occurred
Risk and Concerns:
during the reporting period which would require
adjustment or disclosure in the financial statements. Like others, our business may also be affected by
risks and uncertainties not presently known to us
Variance within the Financial Year: or that we currently believe to be immaterial. Detail
There was no event of significant variance between of risk factors and determining how to best handle
quarterly financial performances during the year of such event is furnished in the Notes to the Financial
reporting. Statements (Note-3.15).
Fairness of Financial Statements: Management:

The financial statements together with the notes The Company has an adequate number of
thereon have been drawn up in conformity with the professionals in line with its business volume
Companies Act 1994 and any ammendments made with appropriate expertise. The members of the
thereon and Securities and Exchange Rules 1987. management team are qualified for the jobs they
These statements present fairly the Company’s state are doing and have been working in the insurance
of affairs, the results of its operations, cash flow and industry for a long time and have participated in
changes in equity. various on-job training programs, seminars and
conferences both at home and abroad. Timely action
Books of Accounts: and prudent managerial decisions have enabled the
Proper books of accounts of the Company were Company to withstand competition vis-a-vis other life
maintained. insurers of the country and provide quality service to
our valued policyholders.
Accounting Policies:
Corporate Social Responsibilities:
Appropriate accounting policies have been
consistently applied in preparation of the financial Delta Life Insurance Company Ltd. (DLICL) has
statements and the accounting estimates are based always played its part in carrying out Corporate Social
on reasonable and prudent judgment. Responsibilities. The Gono-Grameen Bima Division
of the company provides a low cost insurance net to
21
the poor of Bangladesh, primarily in the rural areas. DLIC Securities Ltd. Details of the business operation
During the year, the Company donated to some has been given in the later segment of this annual
charities as part of CSR program. report.
Election of Directors: Appreciation:
Sponsor Directors: The Board of Directors of the Company would like
to extend their sincere thanks and gratitude to its
In accordance with the Articles of Association of the
stakeholders for assistance and guidance from time
Company Mr. Zeyad Rahman, Sponsor Director of
to time. The Directors of the Company acknowledge
the Company has volunteered to retire from office at
their gratitude to the honorable shareholders
the 31st Annual General Meeting (AGM) and being
and policyholders, Insurance Development and
eligible will offer himself for re-election from the
Regulatory Authority (IDRA), Registrar of Joint
Sponsor’s Group.
Stock Companies and Firms (RJSC), Bangladesh
Public Subscriber Directors: Securities and Exchange Commission (BSEC),
Dhaka and Chittagong Stock Exchanges and the
In accordance with the Articles of Association of the Central Depository of Bangladesh Ltd. (CDBL)
Company, Mr. Md. Wahid Uddin representing public and other regulatory authorities for their guidance
subscriber shareholder has volunteered to retire and support to the Company and the cooperation
from the office of Directors and being eligible will extended by the Auditors, and the devoted effort
offer himself for re-election. put by the Company’s Employees to uphold the
Subsidiary Operations: Company’s performance.
Delta Life Insurance Company Ltd. has For and on behalf of the Board of Directors,
one (01) wholly owned subsidiary namely
Monzurur Rahman
Chairman of the Board of Directors
22
Certificate of Compliance
ŽŵƉůŝĂŶĐĞĞƌƟĮĐĂƚĞ
on
ŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞ'ƵŝĚĞůŝŶĞƐ
ƚŽƚŚĞ^ŚĂƌĞŚŽůĚĞƌƐŽĨ
We have reviewed the compliance of conditions of the Corporate Governance

Guidelines of the Bangladesh Securities and Exchange Commission (“BSEC”) by
Delta Life Insurance Company Limited (the company) as stipulated in clause 7(i) of
the BSEC notification no SEC/CMRRCD/2006-158/134/Admin/44 dated 7 August,
2012 and subsequent amendment made thereon.
The compliance of conditions of the Corporate Governance Guidelines as stated in
the aforesaid notification and reporting of the status of compliance is the
responsibility of the management of the company. Our review for the purpose of
issuing this certificate was limited to the verification of procedures and
implementations thereof adopted by the company for ensuring the compliance of
conditions of Corporate Governance Guidelines and proper reporting of compliance
status on the compliance statement on the basis of evidences obtained and
representation received thereon from the management of the company. It is neither
an audit nor expression of opinion on the financial statements of the company.
Based on information and explanations given to us, we certify that the company has
complied with the conditions of the Corporate Governance Guidelines as stipulated
in the above mentioned notification of Bangladesh Securities and Exchange
commission and applicable to the company for the year ended 31 December, 2016.
Md. Amirul Islam FCS, FCA

Senior Partner
Place: Dhaka
Date: 18 May 2017
23
The pattern of Shareholding as on December 31, 2016

SI. No. Name of the Directors No. of shares
1 Mr. Monzurur Rahman 3,495,937
2 Mrs. Suraiya Rahman 7,836,499
3 Mr. Aziz Ahmed, FCA, CISA (USA) (Independent Director) Nil
4 Mr. Kazi Fazlur Rahman (Independent Director) 49,500
5 Mr. Zeyad Rahman 4,202,549
6 Ms. Anika Rahman 423,3487
7 Mr. Nizamul Hoque 41,250
8 Mrs. Saika Rahman (Attended by alternate director Mr. Joynul Abedin) 4,203,374
9 Mr. Arif Ahmed (Attended by alternate director Mr. Khadim Hussain Chowdhury) 845,625
10 Mr . M. Anisul Haque , FCMA (Independent Director) Nil

11 Mr. Md. Wahid Uddin 41,250
Parent/subsidiaries/Associate companies and other related parties Nil

Directors, Chief Executive Officer, Company Secretary, Chief Financial 4,218,225
Officer, Head of Internal Audit and their Spouse and minor Children
Shares held by Executives Nil
Shareholders holding 10% or more voting rights Nil
The pattern of Shareholding in percentage:

1 Sponsors & Directors 42.17%
2 Corporate Bodies 22.31%
3 General Investors 35.52%
The pattern of Shareholding in percentage
s S
or
po 42.17
t
35. nves
ns
2%
ors
lI
5
Genera
& Directors
%
22.31% dies
Corporate Bo
24
Board and Committee Meetings and Attendance
During the year a total number ot 8 Board of Directors The Directors who could not attend the meetings
Meetings and 7 Audit Committee Meetings were held were granted leave of absence. The attendance
and the aggregate amount of meeting attendance record ot the Directors is shown below:
fees stood at TK.5,82,250/-.
The number of Board Meetings and attendance of Directors during the year – 2016
were as follows:
Total Total
Sl. number of number of
Name Designation
No. meetings meetings
held attended
01. Mr. Monzurur Rahman Chairman 8 8
02. Mrs. Suraiya Rahman Director 8 8
03. Mr. Aziz Ahmed, FCA, CISA (USA) Director 8 8
04. Mr. Kazi Fazlur Rahman Director 8 7
05. Mr. Zeyad Rahman Director 8 8
06. Ms. Anika Rahman Director 8 8
07. Mr. Nizamul Hoque Director 8 7
Mrs. Saika Rahman

08. Director 8 6
(Attended by alternate director Mr. Joynul Abedin)
Mr. Arif Ahmed
09. Director 8 7
(Attended by alternate director Mr. Khadim Hussain Chowdhury)
10. Mr . M. Anisul Haque , FCMA Director 8 8
11 Mr. Md. Wahid Uddin Director 8 8
The number of Audit Committee Meetings and attendance of Directors during the
year – 2016 were as follows:
Total Total
Sl. number of number of
Name Designation
No. meetings meetings
held attended
01. Mr. Aziz Ahmed, FCA, CISA (USA) Chairman 7 7
02. Mr. Zeyad Rahman Director 7 7
03. Mr. M. Anisul Haque , FCMA Director 7 7
25
Corporate Governance Compliance Report (Annexure-1)

CORPORATE GOVERNANCE COMPLIANCE REPORT 2016
Status of compliance with the conditions imposed by dated 07 August, 2012 issued under section 2CC of the
Bangladesh Securities and Exchange Commission’s Securities and Exchange Ordinance, 1969 is presented
Notification No. SEC/CMRRCD/2006-158/134/Admin/44 below:
(Report under Condition No. 7.00)
Compliance Status
(Put √ in the
Condition appropriate column) Remarks
Title
No. (If any)
Not
Complied
complied
1. BOARD OF DIRECTORS (BoD):
There are 11
Board’s Size
(eleven) Directors
1.1 (number of Board members – minimum 5 and maximum √
in the Board of the
20)
Company
1.2 Independent Directors:
The Company
At least one fifth (1/5) of the total number of Directors √ has appointed 3
1.2(i)
shall be Independent Directors (Three) Independent
Directors (ID)
1.2(ii) Independent Director means a director:
Who either does not hold any share in the company or
√
1.2(ii) (a) holds not less than one percent (1%) shares of the total
paid-up shares of the company
Who is not a sponsor of the company and is not
connected with the company’s any sponsor or Director
or shareholder who holds one percent (1%) or more
1.2(ii) (b) √
shares of the total paid-up shares of the company on the
basis of family relationship. His/her family members also
should not hold above mentioned shares in the company
Who does not have any other relationship, whether
1.2(ii) (c) pecuniary or otherwise, with the company or its √
subsidiary/associated companies
Who is not a member, director or officer of any stock
1.2(ii) (d) √
exchange
Who is not a shareholder, director or officer of any
1.2(ii) (e) member of stock exchange or an intermediary of the √
capital market
Who is not a partner or executive or was not a partner or
1.2(ii) (f) an executive during the preceding 3 (three) years of the √
company’s statutory audit firm
Who shall not be an independent director in more than 3
1.2(ii) (g) √
(three) listed companies
Who has not been convicted by a court of competent
1.2(ii) (h) jurisdiction as a defaulter in payment of any loan to a √
bank or Non-Bank Financial Institution (NBFI)
Who has not been convicted for a criminal offence
1.2(ii) (i) √
involving moral turpitude
Independent Director(s) shall be appointed by the board
The appointments
1.2 (iii) of directors and approved by the shareholders in the √
are duly approved
Annual General Meeting (AGM)
The post of Independent director(s) cannot remain No vacancy
1.2 (iv) None
vacant for more than 90 (ninety) days occurred
26
Compliance Status
(Put √ in the
Title
No. (If any)
Not
Complied
complied
The Board shall lay down a code of conduct of all Board
1.2 (v) √
members and annual compliance of the code to be recorded
The tenure of office of an Independent Director shall be
The IDs are in their
1.2 (vi) for a period of 3 (three) years, which may be extended √
regular term of office
for 1 (one) term only
1.3 Qualification of Independent Director (ID)
Independent Director shall be a knowledgeable individual The qualification and
with integrity who is able to ensure compliance with background of IDs
1.3(i) √
financial regulatory and corporate laws and can make justify their abilities
meaningful contribution to business as such
Independent directors should be a Business Leader /
Corporate Leader/Bureaucrat/University Teacher with
Economics or Business Studies or Law background/
Professionals like Chartered Accountants, Cost &
1.3(ii) √
Management Accountants, and Chartered Secretaries. -do-
The Independent Director must have at least 12
(twelve) years of corporate management/professional
experiences
In special cases the above qualifications may be relaxed
1.3(iii) None
subject to prior approval of the commission
The Chairman of the Board and the Chief Executive
Officer (CEO) shall be different individuals. The
1.4 Chairman shall be elected from among the Directors. √
The Board of Directors shall clearly define respective
roles and responsibilities of the Chairman and the CEO
1.5 The Directors’ Report to Shareholders
Industry outlook & possible future development in the Included in the
1.5(i) √
industry Directors’ report
1.5(ii) Segment- wise or product- wise performance √ -do-
1.5(iii) Risks and concerns √ -do-
A discussion on Cost of Goods sold, Gross Profit and
1.5(iv) √ -do-
Net Profit Margin
Discussion on continuity of any Extra-Ordinary gain or
1.5(v) √ -do-
loss
Basis for related party transactions- a statement of all
1.5(vi) related party transactions should be disclosed in the √ -do-
Annual report
Utilization of proceeds from public issues, rights issues
1.5(vii) N/A
and/or through any others instruments
An explanation if the financial results deteriorate after the
1.5(viii) None -do-
company goes for IPO, RPO, Rights offer, Direct listing etc.
If significant variance occurs between quarterly
1.5(ix) Financial Performance and Annual Financial Statement None -do-
& Management explanation thereof
Remuneration to directors including independent
1.5(x) √ -do-
directors
The financial statements present fairly its state of affairs,
1.5(xi) the result of its operations, cash flows and changes in √ -do-
equity
1.5(xii) Proper books of accounts have been maintained √ -do-
1.5(xiii) Adaption of appropriate accounting policies & estimates √ -do-
IAS/BAS/IFRS/BFRS, as applicable in Bangladesh,
1.5(xiv) have been followed and adequate disclosure for any √ -do-
departure
27
Compliance Status
(Put √ in the
Title
No. (If any)
Not
Complied
complied
The system of internal control is Sound in design and
1.5(xv) √ -do-
has been effectively implemented & monitored
1.5(xvi) Going Concern (ability to continue as a going concern) √ -do-
Highlight and explain significant deviations from the last
1.5(xvii) √ -do-
year’s operating results
Key operating and financial data of at least preceding 5
1.5(xviii) √ -do-
(five) years shall be summarized
1.5(xix) Reason for non declaration of Dividend Dividend declared
The number of Board meetings held during the year & Included in the
1.5(xx) √
attendance by each Director Directors’ Report
1.5(xxi) Pattern of shareholding and name wise details (disclosing aggregate number of shares):
Parent/Subsidiary/Associated Companies and other Included in the
1.5(xxi) (a) √
related parties Directors’ Report
Directors, Chief Executive Officer (CEO), Company
1.5(xxi) (b) Secretary (CS), Chief Financial Officer (CFO), Head of √ -do-
Internal Audit (HIA) and their spouses and minor children
1.5(xxi) (c) Executives √ -do-
Shareholders holding ten percent (10%) or more voting
1.5(xxi) (d) √ -do-
interest in the company
1.5 (xxii) In case of appointment/re-appointment of a Director, disclose:
1.5(xxii)(a) a brief resume of the Director √
1.5(xxii)(b) nature of his /her expertise in specific functional areas √
Name of companies in which the person also holds the
1.5(xxii)(c) √
directorship and the membership of committees of that Board.
CHIEF FINANCIAL OFFICER (CFO), HEAD OF INTERNAL AUDIT (HIA) AND COMPANY SECRETARY
2.
(CS):
Appointment of CFO, HIA and CS and defining their
2.1 √
respective roles, responsibilities & duties
The CFO and CS shall attend the meetings of the Board
2.2 √
of Directors
3. AUDIT COMMITTEE:
The Company shall have an Audit Committee as a sub-
3(i) √
committee of the Board of Directors
The Audit Committee shall assist the BoD in ensuring
that the financial statements reflect true and fair view
3(ii) √
of the state of affairs of the company and in ensuring a
good monitoring system within the business
The Audit Committee shall responsible to the BoD. The
3(iii) duties of the Audit Committee shall be clearly set forth in √
writing
3.1 Constitution of the Audit Committee
Audit Committee
The Audit Committee shall be composed of at least 3
3.1 (i) √ comprises of 3
(three) members
(three) members
The BoD shall appoint members of the Audit Committee
Two members are
3.1 (ii) who shall be directors of the company and shall include √
Independent Director
at least 1 (one) independent director.
All members of the audit committee should be “financially
3.1 (iii) literate” and at least 1 (one) member shall have √
accounting or related financial management experience
28
Compliance Status
(Put √ in the
Title
No. (If any)
Not
Complied
complied
Expiration of the term of service of Audit Committee
members making the number lower than 3 (three) and No vacancy
3.1 (iv) None
fill up the vacancy(ies) by the Board not later than 1 occurred
(one) month from the date of vacancy(ies)
The Company Secretary shall act as the Secretary of
3.1 (v) √
the Audit Committee
The quorum of the Audit Committee meeting shall not
3.1 (vi) √
constitute without at least 1 (one) independent director
3.2 Chairman of the Audit Committee
The BoD shall select the Chairman of the Audit
3.2 (i) √
Committee, who shall be an Independent Director
Chairman of the audit committee shall remain present
3.2 (ii) √
in the AGM
3.3 Role of Audit Committee
3.3 (i) Oversee the financial reporting process √
3.3 (ii) Monitor choice of accounting policies and principles √
3.3 (iii) Monitor Internal Control Risk management process √
3.3 (iv) Oversee hiring and performance of external auditors √
Review the annual financial statements before
3.3 (v) √
submission to the Board for approval
Review the quarterly and half yearly financial statements
3.3 (vi) √
submission to the Board for approval
3.3 (vii) Review the adequacy of internal audit function √
Review statement of significant related party transactions
3.3 (viii) √
submitted by the management
Review Management Letters/Letter of Internal Control
3.3 (ix) √
weakness issued by statutory auditors
Disclosure to the Audit Committee about the uses/ No IPO/RPO/Right
3.3 (x) applications of funds raised through IPO/RPO/Right None issue was made in
Issue proceeds. the year 2016
3.4 Reporting of the Audit Committee
3.4.1 Reporting to the Board of Directors
3.4.1 (i) Reporting to BoD on the activities of the Audit Committee √
3.4.1 (ii) Reporting to BoD by Audit Committee √
3.4.1 (ii)
Reporting to BoD on conflicts of interests None
(a)
3.4.1 (ii) Reporting to BoD on any fraud or irregularity or material
None
(b) defect in the internal control system
3.4.1 (ii) Reporting to BoD on suspected infringement of laws,
None
(c) including securities related laws, rules and regulations
3.4.1 (ii)
Reporting to BoD on any other matter None
(d)
Reporting to BSEC (if any material impact on the
3.4.2 financial condition & results of operation, unreasonably None
ignored by the management)
Reporting to the Shareholders of Audit Committee
3.5 activities, which shall be signed by the Chairman and √
disclosed in the Annual Report
4. EXTERNAL / STATUTORY AUDITORS:
Non-engagement in appraisal or valuation services or As per Auditor’s
4 (i) √
fairness opinions declaration
29
Compliance Status
(Put √ in the
Title
No. (If any)
Not
Complied
complied
Non-engagement in designing and implementation of
4 (ii) √ -do-
Financial Information System
Non-engagement in Book-keeping or other services
4 (iii) √ -do-
related to the accounting records or financial statements
4 (iv) Non-engagement in Broker-dealer services √ -do-
4 (v) Non-engagement in Actuarial services √ -do-
4 (vi) Non-engagement in Internal Audit services √ -do-
Non-engagement in any other services that the Audit
4 (vii) √ -do-
Committee determines
No partner or employees of the external audit firms shall
4 (viii) possess any share of the company during the tenure of √ -do-
their assignment
Non-engagement in audit/certification services on
4 (ix) compliance of corporate governance as required under √ -do-
clause (i) of condition No. 7
5. SUBSIDIARY COMPANY:
Provisions relating to the composition of the BoD of Delta Life has a
5. (i) the holding company shall be made applicable to the √ subsidiary company
composition of the BoD of the subsidiary company as on reporting date
At least 1 (one) Independent Director on the BoD of the
5. (ii) holding company shall be a director on the BoD of the √
subsidiary company
The minutes of the Board meeting of the subsidiary
5. (iii) company shall be placed for review at the following √
Board meeting of the holding company
The minutes of the respective Board meeting of the
5. (iv) holding company shall state that they have reviewed the √
affairs of the subsidiary company also
The Audit Committee of the holding company shall
5. (v) also review the financial statements, in particular the √
investments made by the subsidiary company
THE CEO AND CFO SHALL CERTIFY TO THE BOARD THAT THEY HAVE REVIEWED FINANCIAL
6.
STATEMENTS FOR THE YEAR AND THAT TO THE BEST OF THEIR KNOWLEDGE AND BELIEF:
these statements do not contain any materially untrue The CEO and CFO
6.(i) (a) statement or omit any material fact or contain statements √ have duly certified to
that might be misleading the Board
these statements together present a true and fair view
6.(i) (b) of the company’s affairs and are in compliance with √ -do-
existing accounting standards and applicable laws
There are, to the best of knowledge and belief, no
transactions entered into by the company during the
6 (ii) √ -do-
year which are fraudulent, illegal or violation of the
company’s code of conduct
7. REPORTING AND COMPLIANCE OF CORPORATE GOVERNANCE:
Obtaining certificate from a practicing Professional
Accountant/Secretary regarding compliance of Given in the Annual
7. (i) √
conditions of Corporate Governance Guidelines of the Report
BSEC and include in the Annual Report
Directors statement in the directors’ report whether the Included in the
7. (ii) √
company has complied with these conditions Directors’ Report
30
Report of the Audit Committee-2016

The Audit Committee is a sub-committee of the systems, and compliance with governing rules and
Board of Directors of Delta Life Insurance Company regulations. It monitors the integrity of financial
Limited and has been formed as recommended by the information and provides assurance to the Board that
Bangladesh Securities and Exchange Commission the Company’s and its subsidiary’s internal controls
(BSEC). The main purpose of the committee is to and risk management systems are adequate,
ensure that the Company’s corporate governance is appropriate and regularly reviewed, together with
carried out in a proper and correct manner at par overseeing the work of the internal and external
with the developed countries of the world. auditors.
The Audit Committee provides an independent Composition and Meetings
oversight of the Company’s financial reporting,
non-financial corporate disclosures, internal control The Audit Committee of the Board comprises the
following members of the Board of Directors:
Mr. Aziz Ahmed, FCA, CISA Mr. M Anisul Haque, FCMA Mr. Zeyad Rahman
Chairman Member Member
Sl.
Name Status with the Company Status with the Committee
No
1 Mr. Aziz Ahmed, FCA, CISA Independent Director Chairman
2 Mr. Zeyad Rahman Director Member
3 Mr. M Anisul Haque, FCMA Independent Director Member
During the year 2016, the Audit Committee of the FCMA, Dy. Managing Director (Gono Grameen),
Board of Directors conducted a total of 7 (Seven) Chowdhury Qamrul Ahsan, Executive Director &
meetings where invitees to the meetings were In-Charge, Board Affairs and the Head of Internal
Mr. Swapan Kumar Sarkar FCA, Chief Executive Audit. Relevant head of the departments and other
Officer (CEO), Ms Adeeba Rahman ACII, Additional members of the Management also attended the
Managing Director, Mr Uttam Kumar Sadhu, meetings as and when required.
Major Activities of the Audit Committee in 2016 were
1. Overseeing the financial reporting process Auditors’ and their Financial Audit Report
and monitoring the adoption and execution and Management Report.
of proper and appropriate accounting
4. Reviewing the Internal Audit Plan of 2016
policies and principles.
and making revisions where necessary to
2. Considering and recommending to the improve the plan.
Board the appointment and remuneration
5. Reviewing the Internal Audit reports related
of External Auditors’, MJ Abedin & Co. for
to 14 assignments carried out during the
2016.
year amongst 2 departments of Head Office,
3. Reviewing the External Auditors’ proposed 21 Service Cell/Centers, 1 Agency office of
audit scope and approach along with Ordinary Life, 14 ZOC offices and 132 Unit
the auditing performance of the External offices of GN-GRB.
32
6. Monitoring the corrective measures taken Ltd. (a subsidiary company of DLICL) and
by the Management as recommended by recommending for approval of the same by
Internal Audit to improve risk management the Board of the Parent Company.
and the financial and operational
11. Reviewing whether the laws and regulations
performance of the company.
framed by the regulatory authority (IDRA)
7. Evaluating whether Management was and internal regulations approved by the
setting the appropriate compliance culture board had been complied with.
and had communicated the importance of
The summary of the audit committee meetings
Internal Control & Compliance.
containing various suggestions and recommendations
8. Reviewing the Quarterly, Half Yearly and to the management and the Board were placed to
Annual Financial Statements in 2016 and the board for endorsement on an appropriate and
ensuring that full and appropriate disclosers regular basis.
had been made and that the Financial
Statements were prepared in accordance
Priorities for 2017
with International Accounting Standard For 2017, the priorities will be to ensure appropriate
(IAS) and International Financial Reporting risk management and safeguarding of the assets of
Standard (IFRS) as adopted in Bangladesh the company, assure that there are sound business
before submission to the board for approval. plans and processes to improve business including
selling and underwriting of quality insurance policies
9. Reviewing statement of significant related party
and complying with all regulatory requirements in
transactions submitted by the management.
Bangladesh.
10. Reviewing the financial and audited financial
statements of 2016 of DLIC Securities
(Aziz Ahmed, FCA, CISA)

Chairman
Audit Committee
33
Photo Gallery
30th Annual General Metting of Delta Life Insurance Company Limited held on 27th June, 2016
Celebration of 30th Anniversary of Delta Life Insurance Company Limited.
Celebration of International Women’s Day-2017 by Delta Life Insurance Company Limited.
34
Auditor’s
Report
INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Delta Life Insurance Company
Limited and its subsidiaries as well as the separate financial statements of Delta Life Insurance Company
Limited which comprise the Consolidated and separate Balance Sheets as at 31 December 2016, and the
Consolidated and separate Life Revenue Accounts, Consolidated and separate Statements of Changes in
Equity and Consolidated and separate Statements of Cash Flows for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these consolidated and separate
financial statements in accordance with Bangladesh Financial Reporting Standards (BFRSs), the Companies
Act 1994, the Insurance Act 1938 (as amended in 2010), the Securities and Exchange Rules 1987 and other
applicable laws and regulations and for such internal control as management determines is necessary to
enable the preparation of these consolidated and separate financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these consolidated and separate financial statements based
on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated and separate financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated and separate financial statements. The procedures selected depend on our judgment, including
the assessment of the risks of material misstatement of the consolidated and separate financial statements,
whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the
entity’s preparation and fair presentation of the consolidated and separate financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the consolidated and separate financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Other Matter
The consolidated and separate financial statements of Delta Life Insurance Company Limited for the year
ended 31 December 2015 were audited by S. F. Ahmed & Co. Chartered Accountants, who through their
report dated 19 May 2016 expressed an unqualified opinion on those statements.
Opinion
In our opinion, the consolidated and separate financial statements present fairly, in all material respects
the consolidated and separate financial statements of Delta Life Insurance Company Limited as at 31
December 2016, and of its financial performance and its cash flows for the year then ended in accordance
with Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994, the Insurance Act 1938
(as amended in 2010), the Securities and Exchange Rules 1987 and other applicable laws and regulations.
36
Report on other Legal and Regulatory requirements
a) We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;
b) In our opinion, proper books of accounts, records and other statutory books as required by law have
been kept by the Company so far as it appeared from our examinations of those books and proper
returns adequate for the purpose of our audit have been received from branches not visited by us;
c) The financial statements of subsidiary of the Company, DLIC securities Limited has been audited
by Shafiq Basak & Co. Chartered Accountants and an unqualified opinion was expressed on the
financial statements and those financial statements have been properly reflected in the consolidated
financial statements of the Company.
d) As per section 62(2) of the Insurance Act 2010, in our opinion to the best of our knowledge and
belief an according to the information and explanations given to us all expenses of management
wherever incurred and whether incurred directly or indirectly, in respect of insurance business of
the company transacted in Bangladesh during the year under report have been duly debited to the
Revenue Accounts of the Company;
e) The information and explanations required by us have been received and found satisfactory;
f) As per regulation 11 of part 1 of the third schedule of the Insurance Act, 1938, in our opinion to the
best of our information and as shown by its books, the company during the year under report has
not paid any persons any commission in any form outside Bangladesh in respect of any its business
re-insured abroad;
g) The Balance Sheet, Life Revenue Accounts and Statement of Changes in Equity, Statement of Cash
Flow of the Company dealt with by the report are in agreement with the books of account and returns;
h) The expenditure was incurred for the purpose of the Company’s business; and
i) The Company has complied with relevant laws and regulations pertaining to reserves.
Dhaka, 03 May 2017 M. J. ABEDIN & CO.

Chartered Accountants
37
Photo Gallery
Chairman of Delta Life Insurance Co. Ltd. Mr. Monzurur Rahman hands over a cheque as settlement of death claim of Late Harun-ar-Rashid
Chief Executive Officer (C.C) of Delta Life Insurance Co. Ltd. Ms. Adeeba Rahman, ACII hands over a cheque as settlement of death claim of Late Kazi Toufique Hasan Mithun
Dr. Mijanur Rahman Vice-chancellor of Jagannath University and Dr. Ashraf Uddin Executive Director of Delta Life Insurance Company Limited
exchange documents after signing a health insurance agreement.
38
Consolidated
Financial
Statements
Consolidated Balance Sheet

as at 31 December 2016
Amount in Taka
Notes
2016 2015
Share capital and liabilities

Shareholders’ capital 4.00
Authorized
50,00,00,000 ordinary shares of Tk. 10 each 5,000,000,000 5,000,000,000
Issued, subscribed and paid-up

12,37,50,000 ordinary shares of Tk. 10 each fully paid up in cash 1,237,500,000 1,237,500,000
Dividend equalisation reserve 1,000,000 1,000,000
Life insurance fund 5.00 34,702,479,378 33,029,422,463

Retained Earnings (DLIC Securities) 6.00 47,809,946 14,672,419
Fair Value Change Account 7.00 3,040,734,463 2,765,416,938
Non-Controlling Interest (Minority Interest) 8.00 538 197
Estimated liabilities in respect of outstanding claims, whether

9.00 91,770,634 101,664,819
due or intimated
Amount due to other persons or bodies carrying on insurance
10.00 37,295,096 29,569,919
business
Sundry creditors 11.00 1,281,131,759 1,119,328,093
Provision for doubtful debts 12.00 80,275,735 80,460,266
Reserve for unexpired risk 119,737,637 112,971,388
Premium deposits 13.00 13,394,205 14,358,134
1,623,605,066 1,458,352,619
Total share capital and liabilities 40,653,129,391 38,506,364,636
The annexed notes form an integral part of these financial statements
Adeeba Rahman, ACII (UK) M. Anisul Haque, FCMA Aziz Ahmed, FCA, CISA Monzurur Rahman
Chief Executive Officer (CC) Director Director Chairman
As per our report of same date
Dated, Dhaka M. J. ABEDIN & CO.

03 May 2017 Chartered Accountants
40
Consolidated Balance Sheet

Amount in Taka
Notes
2016 2015
Property and assets

Loan 14.00 715,938,980 804,127,295
On insurer's policies within their surrender value
Investment 15.00
Statutory deposit with Bangladesh Bank (BGTB) 15.01 15,000,000 15,000,000
Bangladesh Govt. Treasury Bond (BGTB) 15.01 14,130,243,272 13,156,825,682
Shares listed on stock exchanges 9,747,556,869 9,339,432,361
Debentures and bonds 15.04 883,796,866 469,219,730
Mutual fund 15.02 42,638,001 42,238,876
Central Depository Bangladesh Ltd. 15.06 3,138,890 3,138,890
Investment property 15.07 1,007,238,113 1,022,269,972
Other loans 15.08 29,981,571 30,155,800
25,859,593,582 24,078,281,311
DSE Membership 16.00 320,200,000 320,200,000
Preliminary Expenses 17.00 771,581 1,028,775
Agents’ balance 48,613 43,261
Outstanding premium 18.00 479,301,533 482,449,242
Interest, dividends and rents accruing but not due 19.00 894,525,413 951,846,891
Advances and deposits 20.00 1,718,315,085 1,511,035,437
Sundry debtors 21.00 258,359,530 123,199,896
Cash and bank balances 22.00
On fixed deposit with banks 7,779,983,066 7,632,482,087
On current account with banks 309,787,535 307,139,768
On SND account with banks 1,032,680,039 1,054,001,874
Cash in hand 26,556,835 4,353,762
Cash in transit 18,758,804 9,088,324
Branch petty cash 16,024,057 3,373,466
9,183,790,336 9,010,439,281
Other accounts
Fixed assets (at cost less depreciation) 23.00 1,212,654,101 1,214,418,595
Stamps, printing and stationery in hand 9,630,637 9,294,652
Total property and assets 40,653,129,391 38,506,364,636

41
Consolidated Life Revenue Account

For the year ended 31 December 2016
Amount in Taka
Notes
2016 2015
Balance of fund at the beginning of the year 33,044,095,029 30,534,409,390
Adjustment made during the year 24.00 112,971,388 135,638,742

Premium less reinsurance 25.00
First year premium (OL) 725,941,188 632,234,496
First year premium (GN-GRB) 500,575,622 433,522,849
1,226,516,810 1,065,757,345
Renewal premium (OL) 2,208,002,841 2,176,839,275
Renewal premium (GN-GRB) 2,000,297,278 1,954,201,971
4,208,300,119 4,131,041,246
Group life insurance premium 275,492,439 241,241,999
Health insurance premium 176,303,882 144,362,013
451,796,321 385,604,012
Gross premium 5,886,613,250 5,582,402,603
Reinsurance premium (47,002,325) (34,863,451)
Net premium 5,839,610,925 5,547,539,152
Interest, dividend and rents 26.00 2,887,677,938 3,101,313,727
Other income 27.00 31,652,979 26,585,360
Total 41,916,008,259 39,345,486,371
First year premium, where the maximum premium paying period is;
Single 65,933,101 59,501,154
Four years 112,318 9,903
Five years 3,616,915 546,175
Six years 90,441 58,682
Seven years 243,443 109,009
Eight years 134,402 119,386
Nine years 72,366 -
Ten years 284,901,363 252,813,294
Eleven years 11,839,904 20,870,940
Twelve years or over (including throughout life) 859,572,557 731,728,802
1,226,516,810 1,065,757,345
EXPENSES
Claims under policies (including provision for claims due
28.00
or intimated), less reinsurance
By death 175,267,683 121,898,012
By maturity 2,386,937,814 1,896,046,021
By survival 487,010,199 579,270,538
By hospitalization 96,051,461 79,676,869
By others 3,240,036 2,281,016
By surrenders 187,794,395 181,420,483
Annuities 780,650 821,123
Bonus in cash 1,534,688,009 1,365,727,795
4,871,770,247 4,227,141,857
Profit commission 15,453,593 18,829,527
4,887,223,840 4,245,971,384
42

Amount in Taka
Notes
2016 2015
Commission: 29.00
(a) Commission to insurance agents (less that on reinsurance) 585,298,575 530,517,213
(b) Allowances and commission [other than commission
298,609,142 273,791,949
including in sub-item (a) preceding]
883,907,717 804,309,162
Salaries etc. (other than to agents and those contained in the
30.00 451,019,641 420,339,917
allowance and commission)
Gratuity 16,666,241 14,174,091
Traveling and conveyance 31.00 8,326,766 8,265,836
Directors' fees 477,250 649,750
Auditors' fees 32.00 511,750 506,000
Medical fees 2,013,239 2,361,248
Legal and professional fees 33.00 3,083,192 3,671,398
Insurance policy stamp 13,681,543 12,057,086
Advertisement and publicity 34.00 13,362,721 14,847,357
Printing and stationery 35.00 16,921,086 19,734,278
Office rent 36.00 56,760,479 58,427,081
Bank charges 37.00 34,981,476 36,274,792
Repairs and maintenance 38.00 21,802,604 13,257,758
Car fuel, maintenance & repairs 28,979,926 28,145,974
Group insurance 6,214,605 5,954,286
Papers and periodicals 390,115 588,769
Telephone, telex and internet 39.00 7,368,717 6,848,029
Electricity, water and gas 6,968,758 10,263,800
Training & recruitment expenses 1,573,126 1,612,982
Fees and subscriptions 40.00 3,807,122 2,785,346
Donations - 220,000
Entertainment 41.00 453,843 383,524
Staff welfare expense 42.00 5,390,790 5,219,355
Insurance premium (general) 3,052,026 3,107,669
Postage and telegram 6,669,001 6,934,793
Uniform and liveries 1,065,255 1,060,518
Development expenses 1,628,110 1,880,430
Prize and Awards 25,713,512 14,158,237
Municipality Tax 4,776,991 -
Conference & Seminar 7,880,008 4,162,359
Company registration (renewal) fees 19,538,410 19,054,950
Stamps 3,934,771 4,893,327
Staff transport expenses 1,422,823 2,068,294
AGM/EGM expenses 817,310 1,493,199
Depreciation 43.00 43,497,260 38,178,982
DSE Expenses (DLIC Securities) 712,161 745,233
Miscellaneous Expenses (DLIC Securities) 150,944 86,797
Written Off Preliminary Expenses (DLIC Securities) 257,194 257,194
CDBL related charges 44.00 846,386 576,718
822,717,152 765,247,357
1,706,624,869 1,569,556,519
43

Amount in Taka
Notes
2016 2015
OTHER EXPENSES
Decrease in Diminution in Value of Investment in Share (DLIC
(13,362,586) 13,362,586
Securities Ltd.)
Provision for income tax 45.00 242,744,696 112,029,465
Appropriations
Dividend 46.00 222,750,001 247,500,000
Balance of the fund at the end of the year as shown in the
34,750,289,802 33,044,095,029
Balance Sheet
Total 41,916,008,259 39,345,486,371

44
Consolidated Statement of Changes in Stockholder’s Equity

Dividend
Share Share Retained Other
Particulars Equalization Total
Capital Premium Earnings Reserve
Reserve
Balance as on January 01, 2016 1,237,500,000 - 1,000,000 - - 1,238,500,000
Addition during the year - - - - - -
Balance as on December 31, 2016 1,237,500,000 - 1,000,000 - - 1,238,500,000

45
Consolidated Statement of Cash Flow

Amount in Taka
2016 2015
Cash flows from operating activities
Collection from premium 5,889,760,959 5,724,116,091
Other Income received 30,478,935 25,908,114
Claim paid (4,897,118,025) (4,619,722,810)
Payment for operating activities (1,918,033,201) (1,762,751,049)
Source tax (income tax) deducted (204,891,997) (161,245,716)
Net cash from operating activities (1,099,803,329) (793,695,370)
Cash flows from investing activities

Investment made (1,521,200,834) (3,227,227,691)
Acquisition of fixed assets (28,451,832) (186,526,178)
Addition of investment property - (28,511,729)
Proceeds from sale of fixed assets 3,388,911 1,764,302
Loan paid against policies (215,440,130) (332,937,598)
Loan realized against policies 303,628,445 196,085,787
Interest, dividends & rents received 2,944,999,416 3,034,182,055
Other loans realized 174,229 554,310
Net cash used in investing activities 1,487,098,205 (542,616,742)
Cash flows from financing activities

Dividend paid (213,943,821) (233,151,533)
Net cash used in financing activities (213,943,821) (233,151,533)
Net increase in cash & cash equivalents 173,351,055 (1,569,463,645)
Cash and cash equivalents at the beginning of the period 9,010,439,281 10,579,902,926
Cash and cash equivalents at the end of the period 9,183,790,336 9,010,439,281

46
Consolidated Statement of Life Insurance Fund

Amount in Taka
Assets
Loan on Insurer’s policies within their surrender value 715,938,980
Investments 25,859,593,582
DSE Membership 320,200,000
Preliminary Expenses 771,581
Agents' balance 48,613
Outstanding premium 479,301,533
Interest, dividends & rents accruing but not due 894,525,413
Advances & deposits 1,718,315,085
Sundry debtors 258,359,530
Cash & bank balances 9,183,790,336
Fixed assets (at cost less depreciation) 1,212,654,101
Stamps, printing and stationery in hand 9,630,637
40,653,129,391
Less: Liabilities
Estimated liabilities in respect of outstanding claims, whether due or intimated 91,770,634
Amount due to other persons or bodies carrying on insurance business 37,295,096
Sundry creditors 1,281,131,759
Provision for doubtful debts 80,275,735
Reserve for unexpired risk 119,737,637
Premium deposits 13,394,205
1,623,605,066
Gross fund (assets - liabilities) 39,029,524,325

Shareholders' capital (paid-up capital) (1,237,500,000)
Dividend equalization reserve (1,000,000)
Retained Earnings (DLIC Securities) (47,809,946)
Fair Value Change Account (3,040,734,463)
Non-Controlling Interest (Minority Interest) (538)
Life insurance fund as at December 31, 2016 34,702,479,378

47
Consolidated Form AA
Classified Summary of the Assets in Bangladesh
Market Value
Class of Assets Book Value Taka Remarks
Taka
Loan
On insurer's policies within their surrender value 715,938,980 715,938,980 Realizable Value
Investment
Statutory deposit with Bangladesh Bank (BGTB) 15,000,000 15,000,000 At Cost
Bangladesh Govt. Treasury Bond (BGTB) 14,130,243,272 14,130,243,272 At Cost
Shares listed on stock exchanges 9,747,556,869 9,747,556,869 Realizable Value
Debentures and bonds 883,796,866 883,796,866 At Cost
Mutual fund 42,638,001 42,638,001 At Cost
Central Depository Bangladesh Ltd. 3,138,890 3,138,890 Book Value
Investment property 1,007,238,113 1,007,238,113 Carrying Value
Other loans 29,981,571 29,981,571 Realizable Value
DSE Membership 320,200,000 320,200,000 Book Value
Preliminary Expenses 771,581 771,581 Book Value
Cash and bank balances
On fixed deposit with banks 7,779,983,066 7,779,983,066 Book Value
On current account with banks 309,787,535 309,787,535 Book Value
On SND account with banks 1,032,680,039 1,032,680,039 Book Value
Cash in hand 26,556,835 26,556,835 Book Value
Cash in transit 18,758,804 18,758,804 Realizable Value
Branch petty cash 16,024,057 16,024,057 Realizable Value
Other accounts
Agents’ balance 48,613 48,613 Realizable Value
Outstanding premium 479,301,533 479,301,533 Realizable Value
Interest, dividends and rents accruing but not due 894,525,413 894,525,413 Realizable Value
Advances and deposits 1,718,315,085 1,718,315,085 Realizable Value
Sundry debtors 258,359,530 258,359,530 Realizable Value
Fixed assets (at cost less depreciation) 1,212,654,101 1,212,654,101 Carrying Value
Stamps, printing and stationery in hand 9,630,637 9,630,637 At Cost
Total 40,653,129,391 40,653,129,391

48
Financial Statements
of Delta Life Insurance
Company Limited
Balance Sheet
Amount in Taka
Notes
2016 2015
Share capital and liabilities
Shareholders' capital 4.00
Authorized
50,00,00,000 ordinary shares of Tk. 10 each 5,000,000,000 5,000,000,000
Issued, subscribed and paid-up

12,37,50,000 ordinary shares of Tk. 10 each fully paid up in cash 1,237,500,000 1,237,500,000
Dividend equalisation reserve 1,000,000 1,000,000
Life insurance fund 5.00 34,702,479,378 33,029,422,463

Fair Value Change Account 7.00 3,040,734,463 2,765,416,938
Estimated liabilities in respect of outstanding claims, whether

9.00 91,770,634 101,664,819
due or intimated
Amount due to other persons or bodies carrying on insurance
10.00 37,295,096 29,569,919
business
Sundry creditors 11.A 1,080,068,285 1,087,250,552
Provision for doubtful debts 12.00 80,275,735 80,460,266
Premium deposits 13.00 13,394,205 14,358,134
1,422,541,592 1,426,275,078
Total share capital and liabilities 40,404,255,433 38,459,614,479

50
Balance Sheet
Amount in Taka
Notes
2016 2015
Property and assets
Loan 14.00 715,938,980 804,127,295
On insurer's policies within their surrender value
Investment 15.A
Statutory deposit with Bangladesh Bank (BGTB) 15.01 15,000,000 15,000,000
Bangladesh Govt. Treasury Bond (BGTB) 15.01 14,130,243,272 13,156,825,682
Shares listed on stock exchanges 15.03 9,334,593,426 8,942,042,411
Debentures and bonds 15.04 883,796,866 469,219,730
Mutual fund 15.02 42,638,001 42,238,876
Central Depository Bangladesh Ltd. 15.06 3,138,890 3,138,890
DLIC Securities Limited (Subsidiary) 15.05 1,399,999,940 999,999,950
Investment property 15.07 1,007,238,113 1,022,269,972
Other loans 15.08 29,981,571 30,155,800
26,846,630,079 24,680,891,311
Agents’ balance 48,613 43,261

Outstanding premium 18.00 479,301,533 482,449,242
Interest, dividends and rents accruing but not due 19.00 894,525,413 951,846,891
Advances and deposits 20.A 1,693,007,620 1,503,605,042
Sundry debtors 21.A 124,396,400 122,842,387
Cash and bank balances 22.A

On fixed deposit with banks 22.01 7,141,460,856 7,418,428,337
On current account with banks 22.03 309,787,535 307,139,768
On SND account with banks 22.04 916,848,367 949,273,388
Cash in hand 26,531,729 4,347,780
Cash in transit 18,758,804 9,088,324
8,429,411,348 8,691,651,063
Other accounts
Fixed assets (at cost less depreciation) 23.A 1,211,364,810 1,212,863,335
Stamps, printing and stationery in hand 9,630,637 9,294,652
Total property and assets 40,404,255,433 38,459,614,479

51
Life Revenue Account

Amount in Taka
Notes
2016 2015
Balance of fund at the beginning of the year 33,029,422,463 30,529,203,492
Adjustment made during the year 24.00 112,971,388 135,638,742

Premium less reinsurance 25.00
First year premium (OL) 725,941,188 632,234,496
First year premium (GN-GRB) 500,575,622 433,522,849
1,226,516,810 1,065,757,345
Renewal premium (OL) 2,208,002,841 2,176,839,275
Renewal premium (GN-GRB) 2,000,297,278 1,954,201,971
4,208,300,119 4,131,041,246
Group life insurance premium 275,492,439 241,241,999
Health insurance premium 176,303,882 144,362,013
451,796,321 385,604,012
Gross premium 5,886,613,250 5,582,402,603
Reinsurance premium (47,002,325) (34,863,451)
Net premium 5,839,610,925 5,547,539,152
Interest, dividend and rents 26.A 2,850,286,532 3,067,637,078

Other income 27.A 24,663,303 20,786,465
Total 41,856,954,611 39,300,804,929
First year premium, where the maximum premium paying

period is;
Single 65,933,101 59,501,154
Four years 112,318 9,903
Five years 3,616,915 546,175
Six years 90,441 58,682
Seven years 243,443 109,009
Eight years 134,402 119,386
Nine years 72,366 -
Ten years 284,901,363 252,813,294
Eleven years 11,839,904 20,870,940
Twelve years or over (including throughout life) 859,572,557 731,728,802
1,226,516,810 1,065,757,345
Claims under policies (including provision for claims due

28.00
or intimated), less reinsurance
By death 175,267,683 121,898,012

By maturity 2,386,937,814 1,896,046,021
By survival 487,010,199 579,270,538
By hospitalization 96,051,461 79,676,869
By others 3,240,036 2,281,016
By surrenders 187,794,395 181,420,483
Annuities 780,650 821,123
Bonus in cash 1,534,688,009 1,365,727,795
4,871,770,247 4,227,141,857
Profit commission 15,453,593 18,829,527
4,887,223,840 4,245,971,384
52

Amount in Taka
Notes
2016 2015
Expenses of management
Commission: 29.00
(a) Commission to insurance agents (less that on reinsurance) 585,298,575 530,517,213
(b) Allowances and commission [other than commission includ-
298,609,142 273,791,949
ing in sub-item (a) preceding]
883,907,717 804,309,162
Salaries etc. (other than to agents and those contained in the

30.00 449,057,174 418,955,254
allowance and commission)
Gratuity 16,666,241 14,174,091
Traveling and conveyance 31.00 8,114,314 8,213,716
Directors' fees 477,250 649,750
Auditors' fees 32.00 460,000 460,000
Medical fees 2,013,239 2,361,248
Legal and professional fees 33.00 3,083,192 3,671,398
Insurance policy stamp 13,681,543 12,057,086
Advertisement and publicity 34.00 13,241,226 14,847,357
Printing and stationery 35.00 16,907,778 19,685,235
Office rent 36.00 55,849,229 57,544,181
Bank charges 37.00 34,829,320 36,131,366
Repairs and maintenance 38.00 21,625,704 13,077,103
Car fuel, maintenance & repairs 28,979,926 28,145,974
Group insurance 6,214,605 5,954,286
Papers and periodicals 390,115 588,769
Telephone, telex and internet 39.00 7,163,749 6,656,393
Electricity, water and gas 6,968,758 10,263,800
Training & recruitment expenses 1,573,126 1,612,982
Fees and subscriptions 40.00 3,580,422 2,674,346
Donations - 220,000
Entertainment 41.00 416,030 383,524
Staff welfare expenses 42.00 5,365,544 5,205,759
Insurance premium (general) 3,052,026 3,107,669
Postage and telegram 6,669,001 6,934,793
Uniform and liveries 1,065,255 1,060,518
Development expenses 1,628,110 1,880,430
Prize and Awards 25,713,512 14,158,237
Municipality Tax 4,776,991 -
Conference & Seminar 7,880,008 4,162,359
Company registration (renewal) fees 19,538,410 19,054,950
Stamps 3,934,771 4,893,327
Staff transport expenses 1,422,823 2,068,294
AGM/EGM expenses 817,310 1,493,199
Depreciation 43.A 43,108,761 37,689,162
CDBL related charges 44.00 390,576 214,673
816,656,039 760,251,229
1,700,563,756 1,564,560,391
53

Amount in Taka
Notes
2016 2015
OTHER EXPENSES
Provision for income tax 45.A 224,200,000 100,379,303
Appropriations
Dividend 46.00 222,750,000 247,500,000
Balance of the fund at the end of the year as shown in the

34,702,479,378 33,029,422,463
Balance Sheet
Total 41,856,954,611 39,300,804,929

54
Statement of Changes in Stockholder’s Equity

Dividend
Share Share Retained Other
Particulars Equalization Total
Capital Premium Earnings Reserve
Reserve
Balance as on January 01, 2016 1,237,500,000 - 1,000,000 - - 1,238,500,000
Addition during the year - - - - - -

55
Statement of Cash Flow

Amount in Taka
2016 2015
Cash flows from operating activities
Collection from premium 5,889,760,959 5,724,116,091
Other Income received 23,489,259 20,109,219
Claim paid (4,897,118,025) (4,619,722,810)
Payment for operating activities (1,943,097,332) (1,781,143,892)
Source tax (income tax) deducted (186,733,588) (156,574,846)
Net cash flows from operating activities (1,113,698,727) (813,216,238)
Cash flows from investing activities

Investment made (1,905,627,331) (3,429,837,781)
Acquisition of fixed assets (28,329,302) (186,039,878)
Addition of investment property - (28,511,729)
Proceeds from sale of fixed assets 3,388,911 1,764,302
Loan paid against policies (215,440,130) (332,937,598)
Loan realized against policies 303,628,445 196,085,787
Interest, dividends & rents received 2,907,608,010 3,000,504,406
Other loans realized 174,229 554,310
Net cash flows from investing activities 1,065,402,832 (778,418,181)
Cash flows from financing activities

Dividend paid (213,943,820) (233,151,533)
Net cash flows from financing activities (213,943,820) (233,151,533)

Net increase in cash & cash equivalents (262,239,715) (1,824,785,952)
Cash and cash equivalents at the beginning of the period 8,691,651,063 10,516,437,015
Cash and cash equivalents at the end of the period 8,429,411,348 8,691,651,063

56
Statement of Life Insurance Fund

Amount in Taka
Assets
Loan on Insurer’s policies within their surrender value 715,938,980
Investments 26,846,630,079
Agents' balance 48,613
Outstanding premium 479,301,533
Interest, dividends & rents accruing but not due 894,525,413
Advances & deposits 1,693,007,620
Sundry debtors 124,396,400
Cash & bank balances 8,429,411,348
Fixed assets (at cost less depreciation) 1,211,364,810
Stamps, printing and stationery in hand 9,630,637
40,404,255,433
Less: Liabilities
Estimated liabilities in respect of outstanding claims, whether due or intimated 91,770,634
Amount due to other persons or bodies carrying on insurance business 37,295,096
Sundry creditors 1,080,068,285
Provision for doubtful debts 80,275,735
Reserve for unexpired risk 119,737,637
Premium deposits 13,394,205
1,422,541,592
Gross fund (assets - liabilities) 38,981,713,841

Shareholders' capital (paid-up capital) (1,237,500,000)
Dividend equalization reserve (1,000,000)
Fair Value Change Account (3,040,734,463)
Life insurance fund as at December 31, 2016 34,702,479,378

57
Form AA
Classified Summary of the Assets in Bangladesh
Market Value
Class of Assets Book Value Taka Remarks
Taka
Loan
On insurer's policies within their surrender value 715,938,980 715,938,980 Realizable Value
Investment
Statutory deposit with Bangladesh Bank (BGTB) 15,000,000 15,000,000 At Cost
Bangladesh Govt. Treasury Bond (BGTB) 14,130,243,272 14,130,243,272 At Cost
Shares listed on stock exchanges 9,334,593,426 9,334,593,426 Fair Value
Debentures and bonds 883,796,866 883,796,866 At Cost
Mutual fund 42,638,001 42,638,001 At Cost
Central Depository Bangladesh Ltd. 3,138,890 3,138,890 Book Value
DLIC Securities Limited 1,399,999,940 1,399,999,940 Book Value
Investment property 1,007,238,113 1,007,238,113 Carrying Value
Other loans 29,981,571 29,981,571 Realizable Value
Cash and bank balances
On fixed deposit with banks 7,141,460,856 7,141,460,856 Book Value
On current account with banks 309,787,535 309,787,535 Book Value
On SND account with banks 916,848,367 916,848,367 Book Value
Cash in hand 26,531,729 26,531,729 Book Value
Cash in transit 18,758,804 18,758,804 Realizable Value
Branch petty cash 16,024,057 16,024,057 Realizable Value
Other accounts
Agents’ balance 48,613 48,613 Realizable Value
Outstanding premium 479,301,533 479,301,533 Realizable Value
Interest, dividends and rents accruing but not due 894,525,413 894,525,413 Realizable Value
Advances and deposits 1,693,007,620 1,693,007,620 Realizable Value
Sundry debtors 124,396,400 124,396,400 Realizable Value
Fixed assets (at cost less depreciation) 1,211,364,810 1,211,364,810 Carrying Value
Stamps, printing and stationery in hand 9,630,637 9,630,637 At Cost
Total 40,404,255,433 40,404,255,433

58
Notes to the
Financial
Statements
Notes to the Financial Statements

1.00 Legal status and nature of business
1.01 Establishment and status of the company
Delta Life Insurance Company Ltd. (hereinafter referred to as “DLICL”/“the Company”) was
incorporated as a public limited company as on 10 November, 1986 under the Companies Act 1913
as amended in 1994. The Company commenced its business in December 1986. DLICL got listed
in the Dhaka and Chittagong Stock Exchange Ltd. in the year 1995. The company is also registered
with the Controller of Insurance/The Insurance Development and Regulatory Authority (IDRA). The
Registered Office of the Company is located at Delta Life Tower, Plot # 37, Road # 45 (South) & 90
(North), Gulshan Circle-2, Dhaka 1212, and Bangladesh.
1.02 Nature of business
The Company is carrying on the business of providing Life Insurance. Under which are the following
different divisions exists: Ordinary Life (OL), Group Insurance (GI) and Health Insurance (HI). The
Company’s Life Insurance business comprises of Individual life for urban and suburban people, micro
insurance in the name of Gono-Grameen Bima (GN-GNB) for low income group with limited or no
access to financial instruments and Group business for conglomerates.
Most of the products are participating traditional while few products under individual life are non-
participating traditional. To enhance the benefits of the plans accidental and disability riders are also
offered.
Subsidiary Companies:
Delta Life Insurance Company is a parent company with a subsidiary named DLIC Securities Limited.
Details of the subsidiary are given below.
The Company obtained permission to form a subsidiary company from Insurance Development &
Regulatory Authority (IDRA) on September 20, 2012. In pursuant to the permission from IDRA, the
Company (Parent) formed a wholly owned (99.999%) subsidiary public limited company named DLIC
Securities Limited. The main objectives of the subsidiary company is to carry out business of a stock
broker and stock dealer and therefore to buy, sell, and deal in shares, stocks, debentures, bonds and
other securities and to carry out business as is permissible for a broker and dealer.
2.00 Basis of presentation and statement of compliance
2.01 Statement of compliance
The following underlying assumptions, measurement base, laws, rules, regulations and accounting
pronouncements have been considered in preparing and presenting the accompanying consolidated
financial statements:
l Going Concern
l Accrual unless stated otherwise except for Cash Flow Statement
l Historical cost convention
l The Insurance Act 1938 (as amended in 2010)
l The Insurance Rules 1958
l Provisions of the Companies Act 1994
l The Securities and Exchange Commission (SEC) Rules 1987
l Dhaka Stock Exchanges (listing) Regulations 2015
60
l Income Tax Ordinance 1984
l The Bangladesh Financial Reporting Standards (BFRS) which have been adopted by the
Institute of Chartered Accounts of Bangladesh (ICAB)
l Any other applicable laws, regulations, covenants, conventions and practices prevailing with
the insurance industry in Bangladesh.
l Where the requirement of the companies Act 1994, The Insurance Act 1938 (as amended
2010), The Securities and Exchange Commission Rules 1987 differ with the requirement of
these standards, the requirements of the Companies Act 1994, The Insurance Act 1938 (as
amended 2010) and The Securities and Exchange Commission Rules 1987 take precedence.
l These financial statements have been prepared on the format of financial statement prescribed
in the Insurance Act 1938 (as amended in 2010), Insurance Rules 1958 and the Securities and
Exchange Commission Rules 1987.
2.01. a Application of Bangladesh Financial Reporting Standards (BFRS)
The Accounting and Financial Reporting Standards that are applicable for the financial statements for
the year under review, include the following:
BAS 1 Presentation of Financial Statements

BAS 2 Inventories
BAS 7 Statements of Cash Flows
BAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS 10 Events after the Reporting Period
BAS 12 Income Taxes
BAS 16 Property, Plant and Equipment
BAS 18 Revenues
BAS 19 Employee Benefits
BAS 24 Related Party Disclosures
BAS 26 Accounting and Reporting by Retirement Benefits Plans
BAS 27 Separate Financial Statements
BAS 34 Interim Financial Reporting
BAS 36 Impairment of Assets
BAS 37 Provisions, Contingent Liabilities and Contingent Assets
BAS 38 Intangible Assets
BAS 39 Financial Instruments; Recognition and Measurement
BAS 40 Investment Property
BFRS 5 Non-Current Assets Held for Sale and Discontinued Operations.
BFRS 7 Financial Instruments Disclosures
BFRS 9 Financial Instruments
BFRS 13 Fair Value Measurement
New Standards and amendments to Standards adopted by the Institute of Chartered Accountants of
Bangladesh subsequent to 31 December 2016, that are applicable to the company will be taken into
consideration in due course.
61
2.02 The functional and presentation currency
The financial statements are presented in Bangladeshi Taka, which is the company’s functional and
presentation currency.
2.03 Use of critical accounting estimates and judgments
The preparation of financial statements in conformity with the generally accepted accounting
principles and standards require that the company’s management make estimates and assumptions
that affect the reported amounts of income and expenses for the year and reported balances of
assets and liabilities. The estimates and assumptions used in the accompanying financial statements
are based upon management’s evaluation of the relevant facts and circumstances of the date of
financial statements. Actual results could differ from the estimates. Any revision to the accounting
estimate is recognized prospectively.
2.04 Reporting period
The financial statements of the company cover one financial year from 01 January 2016 to 31
December 2016 of the calendar year.
2.05 Components of the financial statements
The financial statements include the following components:
l Balance Sheet
l Life Revenue Account
l Cash Flow Statement
l Statement of Life Insurance Fund
l Statement of changes in stockholders equity
l Classified summary of the Assets (Form AA) and
l Accounting Policies and Explanatory Notes.
3.00 Summary of significant accounting policies
l The accounting policies adopted in the preparation of these Financial Statements are consistent
with those followed in the preparation of the company’s Financial Statements for the year
ended 31 December 2015.
l The significant accounting policies adopted in the preparation of these Financial Statements
are set out below.
3.01 Basis of Consolidation
These consolidated financial statements are prepared in accordance with the principles and
procedures for preparation and presentation of consolidated financial statements as laid down under
the Bangladesh Accounting Standard (BAS)-27 “Consolidated and Separate Financial Statement”.
The financial statements of the Company and the Subsidiary have been combined on a line-by-line
basis by adding together similar items of expenses, assets and liabilities after eliminating all intra
group balances, transactions, income and expenses, and profit and loss resulting from intra-group
transaction and dividend. Income of subsidiary has been disclosed in the consolidated life revenue
account under the heads – “Other Income”.
The Company and the Subsidiary are governed by different regulations. Wherever, accounting
policies applied in the consolidated financial statements differ, respective accounting policies of the
Company and the Subsidiary as applied to such items have been disclosed. The financial statements
of the subsidiaries are prepared for the same reporting year as the parent company, using consistent
accounting policies.
62
The notes to the consolidated financial statements are intended to serve as a means of informative
disclosure and a guide towards better understanding of the consolidated position of the Group. The
Group has disclosed such notes from the standalone financial statements of the Company and the
Subsidiary which are necessary for presenting a true and fair view of the consolidated financial
statements.
3.02 Revenue recognitions
All business is written in Bangladesh.
3.2.1 Individual life policies
l Individual life first year, renewal and single premiums are recognized once related policies are
issued/renewed against receipt and realization of premium.
l Premium outstanding as at 31st December 2016, for which, the grace period has not been
expired and collected subsequently by 31st January 2017 are also recognized as revenue.
l Uncollected premium from lapsed policies is not recognized as income until such policies are
revived.
3.2.2 Group life and health policies
The premiums of Group policies are recorded after receipt of the premiums and in certain
circumstances premiums falling due under the policies within the financial period are also recognized
if these premiums are subsequently received.
3.2.3 Reserve for unexpired risk- group business
Gross premium proportionate to the unexpired duration of the period for which the respective
premiums have been billed and received are held as reserve for unexpired risk.
3.03 Reinsurance Premium
Commission received on reinsurance ceded is recognized as income, and net off against commission
paid, in the period in which reinsurance premium is ceded. Profit commission on reinsurance ceded
is recognized as income, and net off against reinsurance premium, in the period in which reinsurance
premium is ceded.
3.04 Interest, dividends and rents
Interest income is recognized on accrual basis (except project loan) unless otherwise stated.
Accretion of discount and amortization of premium in respect of debt securities and other fixed
income securities is amortized over the remaining period to maturity of such instruments on straight
line basis.
Dividend income is recognized when the Company’s right to receive dividend is established.
Rental income is recognized on accrual basis, except for the cases that are under litigation.
Realized gains and losses in respect of financial instruments, such as, equity securities, units of
mutual fund and corporate bonds listed in the stock exchange are calculated as the difference
between the net sales proceeds and their costs using the weighted average method, that is profit or
loss on sale of the listed financial instruments are recognized in the Income Statement on cost basis.
Policy loans are allowed to the policy holders to the extent of surrender values of their respective
policies provided the policies are in force for not less than two years. Interest on policy loan is
accounted on accrual basis subject to the provisions of the Insurance Act/Rules.
Profit or loss on sale of securities/equities is taken to revenue only in the year of sale.
63
Income on debentures is recognized at prescribed rates except recovery is considered doubtful in

which case the income is recognized on a receipt basis.
Interest income on bank deposits (FDRs) is recognized on accrual basis.
Interest and dividend are accounted at gross value (before deduction of Income Tax).
3.05 Provisions
A provision is recognized in the Balance Sheet date if, as a result of past events, the company has
a present legal or constructive obligation that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the obligation.
Provision has been made against the loans and advances with small prospect of recovery. Provisions
have not been made against advance for which legal cases instituted but remained pending for
decision.
3.06 Contingencies & Commitments
3.6.1 Contingencies
Contingencies arising from claim, litigation, tax assessment, fines, penalties, etc. are recorded when
it is probable that the obligation has been incurred and the amount can reasonably be measured.
The Income Tax Department (DCT) has appealed to the High Court Division of Supreme Court in
December, 2007 against orders (ITA 3145 of 2004-2005) (Assessment year 2003-2004) of Appellate
Tribunal dated 27/03/2005 and Commissioner of Taxes (CT) (Appeals) dated 26/12/2004 claiming
that the Tribunal was not legally justified to uphold the order of the CT Appeals dated 26/12/2004 for
deciding interest income (Tk. 1,70,000) on national investment bond (NIB) as exempt income in the
assessment of tax of the company for the assessment year 2003-2004.
The company has contended against the appeal of the DCT in that the Appellate Tribunal and CT
Appeals have allowed the income on NIB as exempt one in the assessment year 2003-2004 and
such income was also exempted from tax in previous years tax assessment of the company.
As the case has not yet been settled and there exists uncertainties or timing of deciding the tax
liability of the company, if any, and the experts have advised that the company’s grounds of reasoning
against the appeal are well supported in law in view of which the company could not expect any
further liability. (please refer to note 21.04).
There are no other liabilities.
3.6.2 Commitments
Bank guarantees amounting to Tk. 5,00,000.00 (five lacs) has been given in respect of Group Life
Coverage. These bank guarantees will expire by 31st March 2019.
3.07 Premium deposit
Premium deposit represents premium received but risk has not yet been accepted because of
pending underwriting decision as at 31 December 2016.
3.08 Re-insurance
l This represent provisional amount payable to the re-insurer (Munich Re) for the 12 (twelve)
months ended on 31 December 2016. Provision has been made on the basis of best available
information.
l Reinsurance premium is recognized at the same time when the premium income is recognized.
It is measured in line with the terms and conditions of the reinsurance treaties.
l Claim recoveries from reinsurers are recognized at the same time as the claims are intimated
in line with the term and condition of the reinsurance arrangements.
64
3.09 Claims costs
Claims costs consist of the policy benefit amount and claim settlement costs, where applicable.
Death and rider claims are accounted for on receipt of intimation. Intimations upto the end of the
period are considered for accounting of such claims.
Annuity benefits and Maturity benefits are accounted when due.
Surrenders are accounted for on the receipt of consent from the insured to the quote prescribed in
the policy deed provided by the company.
Maturity claims also include amounts payable on lapsed policies which are accounted for on the date
of maturity of policies.
Amount recoverable from Re-insurers are accounted for in the same period as the related claim and
are reduced from claims.
3.10 Investments
Investments are made in accordance with the provisions of the Insurance Act/Rules 1958 and the
circulars/notifications issued by the Controller of Insurance/ IDRA in this context from time to time.
a) Classification of investment
Investments with fixed or determinable payments and fixed maturity, where the company has positive
intent and ability to maturity, are classified as Held-to-Maturity. Investments which are intended to be
held for an indefinite period but may be sold in response to the need for liquidity or change in mark-
up/ interest rates are classified as Available- For- Sale.
b) Valuation of investments
i) Investment property
Investment property represents land or building held for investment purpose. Investment
property is valued at historical cost subject to revaluation, if any.
Cost of investment property includes their acquisition cost and costs of various phases of
construction works including advance to contractors which have been completed at the balance
sheet date.
The construction works of office buildings on leasehold land at various places are in progress,
which has not been fully completed at Balance Sheet date and hence classified as capital work
in progress (CWIP) in the accounts.
ii) Debt Securities
Debt securities with fixed income {(Bangladesh Govt. Treasury Bond), Private and Public
Bonds and Debentures} are categorized by class and are accounted for “held to maturity” and
have been valued at cost. The discount in respect of the debt securities which is the difference
between the purchase price and the redemption amount is amortized and recognized in
the Revenue Account on straight line basis over the remaining period to maturity of these
securities. For fair presentation, premium, if any, premium on acquisition of those bonds and
debentures are however charged to Revenue in the year of acquisition.
iii) Financial instruments stated at fair value
Listed financial instruments such as equities, mutual funds and corporate bonds are measured
at fair value which is based on their quoted closing price on the primary exchanges (Dhaka and
Chittagong Stock Exchanges) at the balance sheet date without any deduction for transaction
costs. Unlisted equities are measured at historical cost.
65
Unrealized gains and losses arising due to changes in fair value of financial instruments (listed
equity shares & mutual funds) are recognized in the balance sheet under the head “Fair Value
Change Accounts”.
iv) Loans are valued at historical cost (less repayments), subject to provision for impairment, if
any.
v) Investment in DLIC Securities Ltd. (Subsidiary) is valued at cost.
vi) All other investments are recognized at cost including their acquisition charges, if any, less
impairment, if any. Interest income from reinstatement of policy is recognized on receipt basis.
3.11 Fixed Assets and Depreciation/Amortization
Fixed assets are reported at cost less accumulated depreciation and impairment, if any. Cost includes
the purchase price and any cost directly attributable to bring the asset to its working condition for
its intended use. Fixed assets of small value and assets for which useful lives can not be estimated
properly are fully charged to the Revenue in the year of their purchases. Subsequent expenditures
incurred on existing fixed assets are expensed out except where such expenditure increases the future
economic benefits from the existing assets. Any addition to the original fixed asset is depreciated over
the useful life of the asset. Depreciation is charged on pro-rata basis from the month of purchase
and up to the previous month of sale. Methods and rates of providing depreciation are consistently
applied in relation to the previous year.
Capital works in progress (CWIP) is stated at cost less impairment, if any and consist of expenditure
incurred and advances made in respect of fixed assets in the course of their acquisition, erection,
construction and installation. The assets are transferred to relevant category of fixed asset when they
are available for use.
Gains/ Losses on disposal of fixed asset are taken to revenue account.
Tangible assets
The company has adopted straight line method of depreciation so as to depreciate the cost of
following type of assets over the useful life of these respective assets which are as follows:
Asset class Useful life of assets

Furniture & Fixture 10
Renovation 5
Computer Hardware & Software 4
Electrical Equipment 5
Vehicles 5
Investment Property
Corporate Office Building (Delta Tower - Gulshan) 100
Lift (Delta Tower - Gulshan) 20
Generator (Delta Tower - Gulshan) 20
Solar Plant (Delta Tower - Gulshan) 10
Central Air Condition System 20
Intangible assets
Expenditure incurred on major application software and their customization or further development
is recognized as an intangible asset. The same is capitalized under fixed assets if such expenditure
results in a benefit of enduring nature. Other software expenses such as support and maintenance
annually are expensed in the period in which they are incurred. Intangible Assets are stated at cost
less accumulated depreciation/amortization. This is amortized over period of four (04) years.
Preliminary expenses incurred for formation of DLIC Securities Ltd. (Subsidiary) has been amortized
over the period of five years commencing from the year 2015.
66
Depreciation rates and methods are reviewed at each balance sheet date and adjusted, if required.
Impairment of assets
The carrying amounts of assets are reviewed at the Balance Sheet date if there is any indication of
impairment based on internal/external factors. An impairment loss, if any, is recognized wherever
carrying amount of an asset exceeds its recoverable amounts.
Encumbrances
There were no encumbrances on assets of the company as at the Balance Sheet date (previous year
Tk. nil).
3.12 Stamps, printing, stationery in hand
Stock of stamps, printing and stationery in hand etc. are valued at cost determined on average basis.
3.13 Provision for doubtful debts
The company regularly evaluates the probability of recovery and provides for doubtful recoverable in
the Revenue Account or Profit & Loss Account, as applicable.
3.14 Taxation
Current Tax
Provision for Taxation is based on taxable income determined under the Fourth Schedule of the
Income Tax Ordinance 1984 and best judgment of the management.
Charge for the current tax is calculated following the accepted method of income assessment and
using the tax rate enacted at the Balance Sheet date and includes adjustments, where considered
necessary, relating to prior years.
Deferred tax
The company does not provide for deferred taxation as current tax has been calculated based on the
actuarial valuation and there is no effect of tax base assets and liabilities.
3.15 Risk Minimization strategies
3.15.01 Individual life business
Insurance underwriting risk is the risk that the Company will suffer losses due to economic situation
or the rate of occurrence of an incident contrary to the forecast made at the time of setting up of the
premium rate.
The underwriting risk arises from death and sometimes due to permanent disability and critical
illness. The Company may get exposed to poor risk due to unexpected experience in terms of claim
severity or frequency. This can be a result of anti-selection, fraudulent claims or poor persistency. The
Company may also face the risk of poor investment return, inflation of business expenses and liquidity
issues on monies invested in the fund. The Company faces the risk of under pricing particularly due
to nature of long-term contract. In addition to this, due to poor persistency, the Company would be
unable to recover expenses of policy acquisition. The Company manages these risks through its
underwriting, reinsurance, claims handling policy and other related control mechanisms. The
Company has a well defined policy and avoids selling policies to high risk individuals. Underwriting
procedures have been enhanced and rules have been structured to enable the Company to strike a
balance between mitigating risk, ensuring control and providing better service. This puts a check on
anti-selection.
The Company seeks to reduce its risk exposure by reinsuring certain levels of risk with renowned
re-insurance Munich-Re.
67
The Company provides quality service to the policyholders and checks to minimize miss-selling
and avoid poor persistency. A regular monitoring of lapsation rate is conducted. The Company has
procedures in place to ensure avoidance of payment of fraudulent claim. The Claim Committee
reviews high sum assured and early claims for verification and detailed investigation of all doubtful
and early claims are conducted. The Company maintains adequate liquidity to cater for potentially
sudden and high cash requirement.
3.15.02 Group life
The major risk underwritten by the company is death which depends on mortality. Other risks
underwritten include disability and major disease.
Risk increases as a result of catastrophic events, business procurement without following underwriting
guidelines, business procurement at low premium rate due to tough market competition and fraudulent
claims. Non-receipt of premium in due time is an additional factor.
The company manages these risks through proper underwriting, reinsurance, effective claims
handling and other claim control mechanism. The company also avoids underwriting group business
with employees exposed to hazardous profession. Pricing is done in line with actuarial guideline,
experience and the mortality exposure the concerned group faces. Moreover, premium rates of
existing groups are also reviewed from time to time on the basis of claim experience. Reinsurance
arrangements are made by the company with renowned re-insurer to limit the risk at affordable
level. Beside, the company avoids payment of fraudulent claims through claim investigation. Strict
monitoring is in place to keep the outstanding balances of premium at a minimum.
3.15.03 Group health
The main risk underwritten by the company is morbidity that requires treatment as inpatient or
outpatient. Risks are increased as a result of increasing incidences of fatal diseases, accident &
catastrophic event, fraudulent practices, health over consciousness of insured etc. Consistent
increase in charges of various hospital services, lack of adequate claim control mechanism and
business procurement at low price in the competitive market are additional factors.
The company manages these risks through proper underwriting and other related claim control
mechanism, premium rate review on claim experience and hospital agreements with discount facility
etc.
The Company has a well defined medical underwriting policy to avoid underwriting Group Health
business with potentially high health risk. Any pre-existing conditions are also screened at this stage.
Health plans are designed and terms & condition are set in such a way that abuses of benefit utilization
are minimized. Pricing is done in consultation with actuarial department on the basis of actual claim
experience. Company has also pre-determined charges for certain illness and investigations with
its panel hospitals. Those are treated as “Standard Rate” which is applied to restrict settlement of
inflated bills. The company avoids settlement of any fraudulent claims through claims investigations
which is managed by experienced technical staff.
3.15.04 Liquidity risk
Liquidity risk is the risk that the Company will be unable to meet its funding requirements. To guard
against the risk the Company has diversified funding sources and assets are managed with liquidity
in mind, maintaining healthy balance of cash and cash equivalent and readily market securities.
3.15.05 Interest rate risk
The Company invests in securities and has deposits that are subject to interest rate risk. Interest rate
risk to the Company is the risk of changes in market. Interest rate reducing the overall returns on its
interest basis securities. The Company limits interest risk by monitoring changes in interest rates in
the money market and by diversifying into various institutions (issuers’ of securities).
68
3.15.06 Market risk (investment pattern)
Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes in
market prices, whether these changes are caused by factors specific to the individual security or its
issuer or factors affecting all securities traded in the market.
The Company is exposed to market risk with respect to its investment.
The Company continues to adopt a prudent policy in respect of investments. The fund of the Company
has been invested as per provision of the Insurance Act. The investments are mainly in Govt.
securities, Fixed Deposits Receipts (FDR’s) with various commercial banks and financial institutions
having acceptable performance parameters and ratings and equity shares in listed companies having
good and positive fundamental and technical attributes.
The Company also limits market risk maintaining a diversified profile and by continuous monitoring
of developments in Govt. securities (treasury bills) equity and term finance certificates markets. In
addition, the Company actively monitors the key factors that affect the underlying value of these
securities.
3.15.07 Reinsurance risk
The Company seeks to reduce its risk exposure by reinsuring certain levels of risk with re-insurer.
Re-insurer ceded does not relieve the Company from its obligation to policyholders and as a result,
the Company also remains liable for the portion of outstanding claims reinsured to the extent that re-
insurer does not meet the obligations ultimately under the reinsurance agreements.
In order to minimize the risk, the Company has obtained reinsurance cover from a renowned re-
insurer, Munich-Re with proven sound financial health.
3.15.08 Credit risk
Credit Risk is the risk, which arises with the possibility that one party to a financial instrument will fail
to discharge its obligation and cause the other party to incur a financial loss. Major credit risk is in
bank balance investments. The management monitors exposure to credit risk through regular review
of credit exposure/CAMELS rating and assessing credit worthiness of counter parties.
3.16 Commission
Commission to Insurance Agents (Less that on re-insurance) represents first year commission,
renewal commission and Group commission.
Allowances and Commission (Other than Commission to Insurance Agents less that on Re-insurance)
represent Field Officers salary and allowances including bonuses.
3.17 Cash flow statement
Cash Flow Statement is prepared in accordance with BAS-7 and Cash Flow from operating activities
has been presented under direct method as outlined in the Securities and Exchange Rules 1987. For
the purpose of cash flow statement, cash and cash equivalents include the following:
l Cash at bank in current and SND accounts
l Term deposits (FDRs) with commercial banks
l Cash in hand & petty cash and in transit
3.18 Comparative information
Relevant comparative information has been disclosed in respect of the year for all numerical
information in the financial statements.
69
3.19 Related party disclosures
Parties are considered to be related; if one of the party has the ability to control the other party or
exercise significant influence over the party in making financial and operating decisions. The company
carried out transactions in the ordinary course of business on an arm’s length basis at commercial
rates with its related parties (please refer to note no. 53)
3.20 Dividend to shareholders
Dividends in cash and stock (bonus shares) to share holders are recognized in the period in which
they are approved.
3.21 General
The previous year’s figures have been regrouped, rearranged and reclassified wherever necessary.
Amounts and other disclosures for the preceding year are included as an integral part of the current
financial statements and are to be read in relation to the amounts and other disclosures relating to
the current year.
Amounts presented have been rounded to the nearest taka. Figures in brackets ( ) indicate deduction/
negative balances.
70
Amount in Taka
2016 2015
4.00 Shareholders' capital
Authorized capital
50,00,00,000 ordinary shares of Tk.10 each. 5,000,000,000 5,000,000,000
Issued, subscribed and paid-up capital
12,37,50,000 ordinary shares of Tk.10 each. 1,237,500,000 1,237,500,000
Category of Shareholders Share holding (%)
Sponsor 26.72 330,619,840 391,294,260
General public 73.28 906,880,160 846,205,740
1,237,500,000 1,237,500,000
4.01 Distribution schedule of paid-up capital (as on December 31, 2016)
No. of Shareholders No. of Shares
Shareholding range As at December As at December As at December As at December
31, 2016 31, 2015 31, 2016 31, 2015
below-500 5,088 6,327 976,869 1,206,028
501-5000 3,679 4,533 6,361,654 7,746,326
5001-10000 346 476 2,506,389 3,460,192
10001-20000 214 262 2,999,744 3,737,859
20001-30000 83 111 1,940,715 2,653,423
30001-40000 34 43 1,209,826 1,476,380
40001-50000 30 42 1,353,231 1,900,702
50001-100000 92 97 6,809,154 7,191,048
100001-1000000 78 83 27,327,602 26,251,657
1000001- Above 28 29 72,264,816 68,126,385
Total 9,672 12,003 123,750,000 123,750,000
5.00 Life Insurance Fund (DLICL) Tk. 34,702,479,378
Balance at the beginning of the year 33,029,422,463 30,529,203,492
Add: Increase in Life Revenue Account
1,673,056,915 2,500,218,971
during the year
Balance at the end of the year 34,702,479,378 33,029,422,463
6.00 Retained Earnings (DLIC Securities Ltd.) Tk. 47,809,946
Balance at the beginning of the year 14,672,566 5,205,898
Add: Increase in Life Revenue Account
33,137,858 9,466,668
during the year
Non-Controlling Interest (Retained earnings) (478) (147)
Balance at the end of the year 47,809,946 14,672,419
7.00 Fair Value Change Accounts Tk. 3,040,734,463
Market Value (Quoted Market Price) as at
9,334,593,426 8,942,042,411
31.12.2016
Less: Book Value at Cost as at 31.12.2016 6,293,858,963 6,176,625,473
3,040,734,463 2,765,416,938
{Please refer note no. 3.10-b (iii)}
8.00 Non-Controlling Interest (Minority
Tk. 538
Interest)
Share capital 60 50
Retained earnings 478 147
538 197
This represents shares and retained earnings belong to outsiders, they are not owned by the group.
71
Amount in Taka
2016 2015
9.00 Estimated liabilities in respect of outstanding
Tk. 91,770,634
claims, whether due or intimated.
The figures have been arrived at as under:
a) Ordinary Life
Death Claim 18,823,941 12,410,550
Maturity Claim 25,001,851 40,898,319
Survival Claim 5,022,638 -
48,848,430 53,308,869
b) Gono - Grameen Bima
Death Claim 4,308,811 151,048
Maturity Claim 23,154,086 32,910,914
Claim on Surrender 2,542,662 65,801
30,005,559 33,127,763
c) Group Insurance 8,728,960 10,540,890
d) Health Insurance 4,187,685 4,687,297
91,770,634 101,664,819
10.00 Amount due to other persons or bodies
Tk. 37,295,096
carrying on insurance business
Munich Reinsurance Company 37,295,096 29,569,919
37,295,096 29,569,919
This represents net amount (after adjustment of claims, profit commission, etc.) payable to Re-insurer (Munich-Re) for life
re-insured with them as shown below:
Nature of transactions Amount (Tk.) Remarks
Provision for - 2016 37,295,096 Awaits for confirmation by the Re-insurer.
Balance as at 31 December 2016 (Tk.) 37,295,096
11.00 Sundry Creditors Tk. 1,281,131,759
This consists as followings:
Delta Life Insurance Co. Ltd. 1,080,068,285 1,087,250,552
DLIC Securities Ltd. 201,063,474 32,077,541
Total Consolidated 1,281,131,759 1,119,328,093
11.A Sundry creditors (DLICL) Tk. 1,080,068,285
Sundry creditors and payable for expenses represent amounts payable to various service providers towards goods
and services availed by the Company along with the provision for expenses and commission on the basis of actual bills
received but not paid within the year.
The break-up of the figure is as followings:
Commission Payable (Note-11.01) 79,284,073 110,065,396
Development Salary & Other Allowances (Note-11.02) 27,347,031 72,510,963
Agents’ License Fees (Note-11.03) 6,776,606 5,374,520
Tax and VAT Deducted at Source 1,610,441 862,115
Security Deposit (Note-11.04) 68,002,453 66,992,216
Unpaid Dividend 35,995,706 27,189,527
Creditors for Expenses (Note-11.05) 14,433,876 6,444,698
Provident Fund (Note-11.06) 9,024,297 8,794,256
Group Insurance & Hospitalization Insurance Premium 389,486 369,438
Provision for Income Tax (Note-11.07) 891,198,799 666,998,799
Interest Suspense Account (Note-11.09) 26,056,421 26,056,421
Unidentified Deposit (Note-11.10) 6,243,357 6,743,034
LRK/EBL Securities Ltd. - 254
Auditors' Fees 960,000 960,000
Car Loan Deposit (Note-11.11) 3,396,809 4,800,809
72
Amount in Taka
2016 2015
Advance Rent 64,504,266 82,845,633

DLIC Securities Ltd.* (155,155,336) 242,473
1,080,068,285 1,087,250,552
* This represents current account balance with the brokerage house at the end of routine and normal investment activities in listed shares.
11.B Sundry creditors (DLIC Securities Ltd.) Tk. 201,063,474
For Expenses & Other Finance 6,984,590 885,099
Payable to Client 131,088,155 3,353,235
Provision for Diminution in Value of Investment in Share - 13,362,586
IPO Control Account Payable 30,190,000 -
Unpaid Dividend 1 -
Provision for Income Tax (Subsidiary Company) (Note-11.08) 32,800,728 14,476,621
201,063,474 32,077,541
11.01 Commissions payable 79,284,073 110,065,396
This represents the provision of commissions payable to OL and GN-GRB's agents and different level of development
officers which were due in December 2016 against first year and renewal business. These were subsequently paid.
11.02 Development Salary & Other Allowances 27,347,031 72,510,963
This represents provision of salary, performance and production bonus payable to OL and GN-GRB development officers
(other than agents). These were paid subsequently.
11.03 Agents’ License Fees 6,776,606 5,374,520
This represents amounts received from various development staff for agent's licenses fees which were under process and
deposited gradually to the IDRA.
11.04 Security Deposit Tk. 68,002,453
Courier 38,000 38,000
Printing Materials 587,000 652,575
Stationery Suppliers 24,000 4,000
Car Repairs (Garage) 580,100 380,100
Contractor's (Construction for office buildings) 58,786,387 58,300,058
Computer Hardware & Software Suppliers 783,625 358,625
Staff (Employment related) 4,952,380 5,038,369
Others 2,250,961 2,220,489
68,002,453 66,992,216
11.05 Creditors for Expenses * Tk. 14,433,876
Printing and stationery 824,553 1,189,390
Office Rent 31,900 404,569
Telephone Bill - 271,076
Electricity Bill 1,127,344 922,548
Traveling and Conveyance 235,525 256,757
Car Fuel & Maintenance 41,864 258,225
Postage 419,326 471,122
Office Furniture & Renovation ** 9,541,973 -
Legal Expenses 446,300 446,300
Staff Welfare Expenses 433,448 379,204
Computer Expenses 25,000 25,000
Prize and awards - 602,336
Others 1,306,643 1,218,171
14,433,876 6,444,698
* This represents various expenses incurred by the Company in the ordinary course of business exclusively for the purpose
of its operation.
** Office furniture & renovation represents Tk. 9,541,973 due to M/S. Vitti Sthapati Brindo Ltd. (Tk. 5,760,414) and M/S. Myth
Limited (Tk. 3,781,559) for supply of office Furniture & Renovation but the bills were settled subsequently.
73
Amount in Taka
2016 2015
11.06 Provident Fund 9,024,297 8,794,256

This represents company's and employees' contribution to PF (Provident Fund Trust) for the month of December 2016. This
was paid subsequently to the Trust.
11.07 Provision for Income Tax Tk. 891,198,799
Upto 2003 38,563,596 38,563,596
2004 - 2015 628,435,203 628,435,203
2016 224,200,000 -
Provision for income tax has been made as required under the Income Tax Ordinance 1984.
Assessment of income tax of the company has been finalized up to Financial Year (FY) 2003 with the
exception of Financial Year (FY) 2001 for which assessment has become time barred (Note no-3.13).
Income Tax Return of the Company for the Financial Year 2004 to 2015 has been submitted to the Income Tax Authorities for
Assessment which is under process.
11.08 Provision for Income Tax: DLIC Securities Tk. 32,800,728

Add: Provision for Income Tax - Current year 18,544,696 11,650,162
Add: Over Provision of tax - Assessment Year 2014-2015 6,419 -
Less: Adjustment for the Assessment Year 2014-2015 227,008 -
11.09 Interest Suspense Account Tk. 26,056,421
Overdue Interest on Home Loan Insurance Scheme 25,608,631 25,608,631
Debenture Interest Receivable from Beximco Denims Ltd. 447,790 447,790
26,056,421 26,056,421
Interest accrued and overdue from loanees under Home Loan insurance scheme related to the period after legal actions
were instituted against those loanees has been credited to Interest Suspense Account.
Overdue debenture Interest receivable from the Beximco Denims Ltd. from FY 2003 but not yet received has been also
credited to this Account.
11.10 Unidentified Deposits Tk. 6,243,357
Adjustments/ reconciled (2,302,421) (2,298,218)
Additions 1,802,744 1,860,563
These represent deposits to company's various bank accounts which could not be reconciled and hence remained unidentified at
year end due to lack of proper documents from banks. For fair representation, the balance in the account aged more than three (3)
years are credited to the Revenue Account but proper records are kept for audit-trail and any subsequent adjustment, if any.
11.11 Car Loan Deposit 3,396,809 4,800,809
This represents deposits received from the employees and adjustable under the Company's Car Scheme.
12.00 Provision for doubtful debts Tk. 80,275,735
The above amount has arrived at as under:
Project loan 54,294,519 54,438,770
Motor car, cycle and bicycle Loan 3,463,465 3,463,465
Branch collection account 3,383,872 3,383,872
Other receivables 9,341,885 9,382,165
Advance Salary 152,064 152,064
OTC Shares * 9,639,930 9,639,930
80,275,735 80,460,266
* OTC Shares: The Company has observed impairment loss of some OTC traded shares amounting to Tk. 96,39,930/- for
which full provision has been made in the Revenue Account.
Provision for doubtful debts has also been made for other assets which have been found less probability of recovery as
detailed above.
74
Amount in Taka
2016 2015
13.00 Premium deposits Tk. 13,394,205
Ordinary Life – 1st year 1,632,159 1,540,981
Ordinary Life – Renewal 2,048,364 1,911,397
Gono-Grameen Bima - 1st year 7,430,227 6,554,467
Group & Health Insurance 2,283,455 4,351,289
13,394,205 14,358,134
This represents payments made by policyholders awaiting adjustment against the policy premiums.
14.00 Loan Tk. 715,938,980
On Insurer's Policies within their surrender value
Loan disbursement during the Year (Note 14.01) 215,440,130 332,937,598
Loan recovery of loan during the year (Note 14.02) (303,628,445) (196,085,787)
14.01 Loan disbursement during the year Tk. 215,440,130

Ordinary Life (OL) 191,898,030 304,799,248
Gono-Grameen Bima (GN-GRB) 23,542,100 28,138,350
215,440,130 332,937,598
14.02 Loan recovery during the year Tk. (303,628,445)
Ordinary Life (OL) (280,992,420) (173,934,719)
Gono-Grameen Bima (GN-GRB) (22,636,025) (22,151,068)
(303,628,445) (196,085,787)
15.00 Investment Tk. 25,859,593,582
DLIC Securities Ltd. (987,036,497) (602,610,000)
15.A Investment (DLICL) Tk. 26,846,630,079
Government Securities (Note-15.01) 14,145,243,272 13,171,825,682
Mutual Fund (Note-15.02) 42,638,001 42,238,876
Shares Listed on Stock Exchanges (Note-15.03) 9,334,593,426 8,942,042,411
Debentures and Bonds (Note-15.04) 883,796,866 469,219,730
DLIC Securities Ltd. (Subsidiary Company Note-15.05) 1,399,999,940 999,999,950
Other Investment (Note-15.06) 3,138,890 3,138,890
Investment Property (Note-15.07) 1,007,238,113 1,022,269,972
Other Loans (Note-15.08) 29,981,571 30,155,800
26,846,630,079 24,680,891,311
15.B Investment (DLIC Securities Ltd.) Tk. (987,036,497)
Shares Listed on Stock Exchanges 412,963,443 397,389,950
Investment in Subsidiary (1,399,999,940) (999,999,950)
(987,036,497) (602,610,000)
75
Amount in Taka
2016 2015
15.01 Government Securities Tk. 14,145,243,272
Statutory Deposit with Bangladesh Bank (BGTB):
The amount represents investment made under statutory
15,000,000 15,000,000
requirements which is made up as follows:
15,000,000 15,000,000
The above amount is invested in 10-year Bangladesh Govt. Treasury Bond (BGTB) and deposited with Bangladesh Bank as
Statutory Deposit as per provisions of the Insurance Act 2010.
Bangladesh Govt. Treasury Bond (BGTB) 14,130,243,272 13,156,825,682
14,130,243,272 13,156,825,682
14,145,243,272 13,171,825,682
15.02 Mutual Fund Tk. 42,638,001
Prime Financial First Unit Fund (PFFUF) 42,638,001 42,238,876
42,638,001 42,238,876
76
Amount in Taka
2016 2015
15.03 Shares Listed on Stock Exchanges (DLICL) Tk. 9,334,593,426 8,942,042,411
Market Value
Average Book Value
Sl. Face Value (Quoted Market
Name of the Institution No. of Unit Cost at Cost as at
No. Per Share Price) as at
Per Unit 31.12.2016
31.12.2016
Bank
1 ABBANK 10.00 647,965 55.43 35,915,433 14,449,620
2 ALARABANK 10.00 409,427 24.69 10,110,741 6,509,889
3 DUTCHBANGL 10.00 89,000 159.99 14,239,186 10,386,300
4 EBL 10.00 749,687 24.10 18,064,861 21,740,923
5 FIRSTSBANK 10.00 290,241 21.64 6,282,235 4,034,350
6 ICBIBANK 10.00 2,084,000 10.01 20,851,052 10,628,400
7 IFIC 10.00 469,058 42.62 19,989,229 9,803,312
10 PREMIERBAN 10.00 111,424 15.73 1,752,821 1,091,955
11 PRIMEBANK 10.00 128,893 23.97 3,089,998 2,281,406
12 PUBALIBANK 10.00 44,022,064 25.21 1,109,654,722 1,056,529,536
13 RUPALIBANK 10.00 125,109 58.12 7,271,486 3,427,987
14 SOUTHEASTB 10.00 221,701 41.07 9,105,829 4,145,809
16 UCBL 10.00 1,470,352 38.04 55,930,879 31,318,498
17 UTTARABANK 10.00 140,240 29.84 4,184,162 3,463,928
Cement
18 HEIDELBCEM 10.00 165,255 558.64 92,318,603 91,270,337
19 LAFSURCEML 10.00 29,523,984 18.87 557,263,777 2,423,919,086
20 MICEMENT 10.00 937,989 74.10 69,507,334 77,384,093
Ceramics Sector
21 RAKCERAMIC 10.00 790,171 119.68 94,570,595 48,911,585
22 SPCERAMICS 10.00 592,147 48.49 28,714,989 6,158,329
Corporate Bond
23 IBBLPBOND 1,000.00 1,740 965.58 1,680,109 1,709,550
24 BRACSCBOND 1,000.00 20,000 1,000.00 20,000,000 20,470,000
Engineering
25 ATLASBANG 10.00 349,625 221.80 77,546,083 38,248,975
26 BDTHAI 10.00 1,234,766 36.75 45,375,399 30,869,150
27 GOLDENSON 10.00 6,308,370 43.62 275,155,219 143,199,999
28 NAVANACNG 10.00 853,212 92.40 78,836,190 62,199,155
29 RANFOUNDRY 10.00 436,500 122.51 53,474,499 47,272,950
30 SALAMCRST 10.00 100,030 80.09 8,011,648 3,731,119
31 DESHBANDHU 10.00 41,839 47.76 1,998,300 493,700
32 APOLOISPAT 10.00 2,744,519 18.04 49,502,267 56,262,640
33 GPHISPAT 10.00 650,947 30.41 19,795,355 22,327,482
Financial Institutions
34 DBH 10.00 21,479,325 3.39 72,777,462 2,195,187,015
35 ICB 10.00 158,820 17.89 2,841,993 16,596,690
36 IDLC 10.00 135,125 33.37 4,509,128 7,702,125
37 ISLAMICFIN 10.00 805,849 34.10 27,479,101 15,552,886
38 LANKABAFIN 10.00 336,548 70.84 23,840,117 11,711,870
39 PRIMEFIN 10.00 504,030 68.01 34,278,611 4,939,494
40 UNIONCAP 10.00 360,385 60.40 21,766,720 7,387,893
Food and Allied
41 FUWANGFOOD 10.00 98,556 32.03 3,156,438 1,576,896
Fuel and Power
41 BDWELDING 10.00 401,029 55.34 22,191,088 4,892,554
77
Market Value
Average Book Value
Per Unit 31.12.2016
31.12.2016
42 LINDEBD 10.00 4,405 237.98 1,048,313 5,708,880

45 KPCL 10.00 614,954 90.28 55,515,362 38,434,625
46 MPETROLEUM 10.00 4,070,000 192.78 784,616,692 693,528,000
47 PADMAOIL 10.00 755,940 209.18 158,129,169 136,220,388
49 SUMITPOWER 10.00 4,214,993 35.64 150,206,667 155,954,740
50 TITASGAS 10.00 82,100 69.78 5,728,763 4,055,740
51 MJLBD 10.00 1,181,517 97.90 115,673,991 141,309,433
Insurance
53 BGIC 10.00 1,050,431 43.70 45,903,661 20,168,275
54 FAREASTLIF 10.00 591,111 138.72 82,001,672 40,018,215
55 FAREASTLIF 10.00 2,690,668 76.79 206,610,044 133,726,200
56 MEGHNALIFE 10.00 213,734 129.93 27,770,391 11,904,984
57 PEOPLESINS 10.00 219,392 45.33 9,945,624 3,949,056
59 PRAGATIINS 10.00 149,342 82.63 12,339,850 4,047,168
60 PRAGATILIF 10.00 10,514 192.80 2,027,094 1,064,017
61 PRIMELIFE 10.00 136,261 109.41 14,908,857 9,252,122
64 UNITEDINS 10.00 16,621 70.10 1,165,199 432,146
IT Sector
65 AGNISYSL 10.00 768,843 34.29 26,366,083 16,068,819
66 BDCOM 10.00 728,470 30.32 22,089,937 18,721,679
68 INTECH 10.00 1,173,206 19.48 22,849,477 17,832,730
69 ISNLTD 10.00 419,793 34.44 14,456,162 5,583,247
Miscellaneous
70 ARAMIT 10.00 149,650 467.77 70,001,331 53,110,785
72 BEXIMCO 10.00 1,674,972 92.19 154,408,484 43,549,272
74 SINOBANGLA 10.00 400,000 36.76 14,702,555 11,560,000
75 UNITEDAIR 10.00 3,442,692 14.52 49,998,673 23,754,575
Mutual Funds
76 1JANATAMF 10.00 3,068,984 8.03 24,641,527 18,107,006
77 1STPRIMFMF 10.00 418,000 44.64 18,660,965 5,266,800
79 DBH1STMF 10.00 6,120,000 10.31 63,084,706 44,676,000
80 EBL1STMF 10.00 218,132 23.59 5,145,178 1,352,418
82 GRAMEENS2 10.00 1,003,968 35.83 35,968,435 12,348,806
83 ICB1STNRB 10.00 156,500 48.66 7,615,353 3,208,250
84 ICB2NDNRB 10.00 737,000 23.11 17,030,051 6,190,800
85 ICB3RDNRB 10.00 680,000 12.61 8,578,037 3,808,000
86 ICBAMCL2ND 10.00 1,464,000 16.57 24,254,183 8,784,000
87 ICBEPMF1S1 10.00 647,000 16.68 10,793,169 4,205,500
88 POPULAR1MF 10.00 661,472 7.56 5,000,000 3,571,949
89 PRIME1ICBA 10.00 310,500 14.33 4,450,929 1,738,800
90 PHPMF1 10.00 2,481,070 8.06 20,000,000 13,397,778
91 EBLNRBMF 10.00 1,304,963 7.66 10,000,000 9,004,245
92 LRGLOBMF1 10.00 518,467 9.64 5,000,000 3,681,115
93 VAMLBDMF1 10.00 2,000,000 10.00 20,000,000 18,400,000
Paper and Printing
94 HAKKANIPUL 10.00 161,500 57.54 9,292,825 7,881,200
Pharmaceuticals and Chemicals
95 ACI 10.00 278,406 208.62 58,080,756 107,325,512
96 ACIFORMULA 10.00 500,000 111.47 55,734,605 76,000,000
97 Activefine 10.00 3,495,397 46.85 163,753,188 151,350,690
98 BEACONPHAR 10.00 434,700 77.67 33,763,686 9,563,400
78
Market Value
Average Book Value
Per Unit 31.12.2016
31.12.2016
99 GLAXOSMITH 10.00 10,000 365.32 3,653,241 15,329,000

100 IMAMBUTTON 10.00 350 23.47 8,213 5,985
101 RECKITTBEN 10.00 7,800 250.42 1,953,248 12,090,000
102 RENATA 10.00 17,250 70.15 1,210,150 18,724,875
103 SQURPHARMA 10.00 500,000 40.29 20,147,110 124,550,000
Service and Real Estate
105 SAPORTL 10.00 1,816,110 88.67 161,032,104 93,529,665
Tannery Industries
106 BATASHOE 10.00 30,000 338.38 10,151,539 34,260,000
106 FORTUNE 10.00 10,063 10.00 100,630 511,200
Telecommunication
107 GP 10.00 1,000,000 255.48 255,477,234 284,100,000
108 BSCCL 10.00 132,770 191.18 25,383,315 15,746,522
Textile
109 DACCADYE 10.00 93,513 37.82 3,536,196 841,617
110 MAKSONSPIN 10.00 845,453 33.35 28,192,350 7,186,350
111 MALEKSPIN 10.00 247,445 76.06 18,821,323 4,330,288
112 RNSPIN 10.00 500,000 35.41 17,703,660 12,550,000
113 SQUARETEXT 10.00 454,483 68.85 31,289,877 31,450,223
Travel and Leisure
114 UNIQUEHRL 10.00 181,500 70.82 12,853,470 9,782,850
Preference
114 DOREENPWR 5,000,000.00 10 5,000,000.00 50,000,000 50,000,000
Total : 6,293,858,963 9,334,593,426
15.04 Debentures and Bonds 883,796,866 469,219,730
Rate of Face
Sl. Total Book Value
Name of the Debentures and Bonds Interest Value Per No. of Unit
No. At Cost
per annum Debenture
1.00 Beximco Fisheries 3,000 100 17,405
2.00 Beximco Denims Ltd. 2,500 4,000 3,602,325
3.00 Prime Bank Bond 11.50% N/A N/A 50,000,000
4.00 Mutual Trust Bond 12.00% N/A N/A 20,000,000
5.00 National Bank Bond 11.50% N/A N/A 20,480,000
6.00 Trust Bank Bond 12.50% N/A N/A 40,000,000
7.00 United Commercial Bank Bond 11.50% N/A N/A 50,000,000
8.00 United Commercial 2nd Sub Bond 10.00% N/A N/A 200,000,000
9.00 Dhaka Bank Sub Bond 9.50% N/A N/A 200,000,000
10.00 Bangla Trac Zero Coupon Bond 8.75% N/A N/A 299,697,136
Total 883,796,866
Sl. No.
1.00: Purchased in 1995, defaulted in payments as per schedule. Rescheduled and defaulted again. Legal action was taken
by ICB. Latest rescheduling was done in 2010. Defaulted again. Legal action is in progress.
2.00: Purchased in 1995, defaulted in payments as per schedule. Rescheduled and defaulted again. Legal action was taken
by ICB. Latest rescheduling was done in 2009. Defaulted again. Legal action is in progress.
79
Amount in Taka
2016 2015
15.05 Investment in DLIC Securities Ltd. (Subsidiary Company) 1,399,999,940 999,999,950

Delta Life Insurance Co. Ltd. holds 139,999,994 shares (99.999%) out of 140,000,000
shares @ Tk. 10/- each against the paid-up capital of the subsidiary company.
DISCLOSURE IN RESPECT OF SUBSIDIARY COMPANY
UNDER SECTION 186 OF THE COMPANIES ACT 1994
DLIC Securities Limited, a Subsidiary Company of Delta Life Insurance Company Limited was incorporated as a public limited
company in Bangladesh bearing certificate of incorporation no. C-110106/13 dated July 07, 2013 under the Companies Act
1994. Delta Life Insurance Company Limited holds 139,999,994 shares (99.999%) of the paid-up capital of the Subsidiary
Company.
- The Subsidiary Company obtained the letter of consent from the Bangladesh Securities and Exchange Commission (BSEC)
on February 24, 2016 for raising of Paid-up capital at Tk. 400,000,000/- (Taka Forty Crore) only. Subsequently the
parent company Delta Life Insurance Company Limited paid Tk. 400,000,000/- (Taka Forty Crore) only on May 18, 2016
towards the raising of paid-up capital of the Subsidiary Company. The total investment in the subsidiary company stood
to Tk. 1,399,999,940/- as at December 31, 2016 being 99.999% of such Paid-up capital.
The Subsidiary Company declared and paid the interim Cash Dividend of Tk. 28,000,000 for the period of 9 (nine) months
- from January 01, 2016 to September 30, 2016 to its shareholder at the rate of 2% (Tk. 0.20 per share of Tk. 10/- each) of the
paid-up capital of the Company which represents 69.25% of the Net Profit after tax. The parent company Delta Life Insurance
Company Limited received the Interim Cash Dividend of Tk. 27,999,999 on December 27, 2016.
- The Company has made a profit after tax of Tk. 47,775,272.00 in the year 2016 as against such profit of Tk. 9,466,668.00
in the year 2015.
15.06 Other Investment Tk. 3,138,890
Share of Central Depository Bangladesh Ltd. (Private) 3,138,890 3,138,890
3,138,890 3,138,890
15.07 Investment Property-at cost (Annexure-A) Tk. 1,007,238,113
Delta Tower (Corporate Office-Gulshan) at cost 592,566,354 602,152,464
Delta Tower - Khulna at cost 414,671,759 420,117,508
Carrying value at the end of the year 1,007,238,113 1,022,269,972
15.08 Other Loans Tk. 29,981,571
Home Loan Insurance Scheme (HLIS) 29,981,571 30,155,800
29,981,571 30,155,800
16.00 DSE Membership Tk. 320,200,000
320,200,000 320,200,000
The above amount has been paid to Dhaka Stock Exchange Ltd. as investment for purchases of one share (Membership) of
Dhaka Stock Exchange Ltd. on behalf of DLIC Securities Ltd.
17.00 Preliminary Expenses: DLIC Securities Ltd. Tk. 771,581
This represents preliminary expenses incurred for formation of DLIC Securities Ltd.
(Subsidiary) and consists the following:
Company formation Fee paid to RJSC 696,581 928,775
BSEC permission Fee 75,000 100,000
771,581 1,028,775
The expenses has been amortized over the period of five years commencing from the year 2015.
18.00 Outstanding premium Tk. 479,301,533
Ordinary Life (OL) 299,504,747 364,917,761
Group Insurance (GI) 17,512,963 17,123,297
Health Insurance (HI) 17,152,745 6,007,864
Gono-Grameen Bima (GN-GRB) 145,131,078 94,400,320
479,301,533 482,449,242
The amount represents premium receivable as on December 31, 2016 for which grace periods did not expire as on the above
date. Most of the outstanding premium amounts have been realized subsequently.
80
Amount in Taka
2016 2015
19.00 Interest, dividends and rents accruing
Tk. 894,525,413
but not due
Bangladesh Govt. Treasury Bond (BGTB) 428,317,495 408,134,554
Fixed Deposit with Banks 305,643,711 384,237,333
Home Loan Insurance Scheme 37,128,696 37,208,696
Interest on Debentures & Bonds 22,865,324 22,823,127
Dividend on Share 76,757,000 63,822,087
Rental Income - 405,000
Interest on Policy and Project Loan. 23,813,187 35,216,094
894,525,413 951,846,891
20.00 Advances and deposits Tk. 1,718,315,085
20.A Advances and deposits (DLICL) Tk. 1,693,007,620
The break-up of the figure is as follows:
Advance Office Rent 4,669,201 6,198,582
Advance Income Tax (TDS) (Note-20.01) 1,440,398,474 1,253,664,886
Security Deposit 7,257,259 6,652,537
Motor Cycle, Bicycles Loan 155,895 163,279
AIT Adjustable (Treasury Bond) 206,963,186 234,577,856
Advance against Gratuity-Fund 382,120 382,120
Advance against salary 1,474,406 923,903
Advance against Legal & Professional Expenses 300,000 -
Advance Training Expenses 3,726,825 -
Advance against Business Dev. B-Scheme 26,701,523 -
Other Advances (Note-20.02) 978,731 1,041,879
1,693,007,620 1,503,605,042
20.B Advances and deposits (DLIC Securities Ltd.) Tk. 25,307,465
Opening Balance 6,481,145 1,810,275
Add: Addition during the year
Tax Paid for the Assess Year 2014-2017 8,004,191 -
Advance Income Tax on Interest Income 3,197,490 2,685,288
Advance Tax on Commission Income 1,113,343 1,166,464
Tax deducted on Dividend Income 5,843,385 819,118
Adjustment for the Assessment year 2014-2015 (220,589) -
24,418,965 6,481,145
Security Deposit 200,000 200,000
Advance against Office Rent 688,500 749,250
25,307,465 7,430,395
20.01 Advance Income Tax (TDS) Tk. 1,440,398,474
Balance at the beginning of the year 1,253,664,886 1,097,090,040
Add: Addition during the year 186,733,588 156,574,846
1,440,398,474 1,253,664,886
Adjustment during the year - -
Balance at the end of the year 1,440,398,474 1,253,664,886
20.02 Other Advances 978,731 1,041,879

Other Advances include advances against staff salary and various expenses which have been adjusted subsequently.
81
Amount in Taka
2016 2015
21.00 Sundry Debtors Tk. 258,359,530
This consists of followings:
Delta Life Insurance Co. Ltd. 124,396,400 122,842,387
DLIC Securities Ltd. 133,963,130 357,509
Total Consolidated 258,359,530 123,199,896
21.A Sundry debtors (DLICL) Tk. 124,396,400
Motor Car & Cycle Loan (Note-21.01) 2,457,436 2,457,436
Bicycle Loan (Note-21.02) 1,006,029 1,006,029
Project Loan 54,294,519 54,438,770
Branch Collection Account (Note-21.03) 3,383,872 3,383,872
Income Tax Refund due (Note-21.04) 42,382,121 42,382,121
Current Account with DLIC Securities Ltd. * 1,738,534 -
Other Receivables (Note-21.05) ** 19,133,889 19,174,159
124,396,400 122,842,387
* This represents current account balance with DLIC Securities Ltd. at the end for various payments which is subsequently
adjusted.
**Adequate provision has been made against project loan (GN-GRB), branch collection account, motor car & motor cycle
loan, bicycle loan and other receivables (Note 12).
21.B Sundry Debtors (DLIC Securities Ltd.) Tk. 133,963,130
Receivable from Client 18,853 242,433
Receivable from DSE 133,944,277 115,076
133,963,130 357,509
21.01 Motor Car & Cycle Loan 2,457,436 2,457,436
This represents the long outstanding of motor cycle and car loan lying with the development personnel.
21.02 Bicycle Loan 1,006,029 1,006,029
This represents the long outstanding of bi cycle and car loan of the insurance agents of GN-GRB.
21.03 Branch Collection Account 3,383,872 3,383,872
This represents the money receivable from various insurance agents at unit level offices of GN-GRB.
21.04 Income Tax Refund Due 42,382,121 42,382,121
This represents net income tax refundable to the company for the assessment years from 1996-1997 to 2001-2002 & 2003-
2004 to 2004-2005 as per tax assessment orders by the Income Tax Department. The assessment of the income tax of the
company for the assessment year 2004-05 has been completed and the necessary adjustments have been effected in the
accounts. The company filed tax return for the year 2002-2003 FY 2001 with loss and the tax return has been barred by
limitation of time. Regarding tax assessment for year 2003-2004, The Income Tax Department has assessed the tax liability
of the company giving tax refund which have been duly accounted for in the accounts. Later on The Income Tax Department
(DCT) has appealed to the High Court Division of the Supreme Court against the order of the Appellate Tribunal for allowing
the interest income on national investment bond (NIB) as exempt income in the tax assessment of the company for 2003-
2004. The case is still pending in court (Please refer to note 3.6.1).
21.05 Other Receivables Tk. 19,133,889
Sundry Receivable 5,589,102 5,589,102
OTC 9,639,930 9,639,930
Others * 3,904,857 3,945,127
19,133,889 19,174,159
* This represent money lying with development staff against advance allowances, abuse of company's money for purchase
of furniture and electrical equipments etc. of unit level offices of GN-GRB and have been brought forward from the account
of FY 1999. The amounts have been fully provided in the accounts (Please refer to note no.-12)
82
Amount in Taka
2016 2015
22.00 Cash and bank balances Tk. 9,183,790,336
The figure has been arrived at as under:
On Fixed Deposit with Banks (Note 22.01 + 22.02) 7,779,983,066 7,632,482,087
On Current Account with Banks (Note 22.03) 309,787,535 307,139,768
On SND Account with Banks (Note 22.04 + 22.05) 1,032,680,039 1,054,001,874
Cash in hand 26,556,835 4,353,762
Cash in transit 18,758,804 9,088,324
22.A Cash and bank balances (DLICL) Tk. 8,429,411,348
On Fixed Deposit with Banks (Note-22.01) 7,141,460,856 7,418,428,337
On Current Account with Banks (Note-22.03) 309,787,535 307,139,768
On SND Account with Banks (Note-22.04) 916,848,367 949,273,388
Cash in hand 26,531,729 4,347,780
Cash in transit 18,758,804 9,088,324
8,429,411,348 8,691,651,063
22.B Cash and bank balances (DLIC Securities

Tk. 754,378,988
Ltd.)
On Fixed Deposit with Banks (Note-22.02) 638,522,210 214,053,750
On SND Account with Banks (Note-22.05) 115,831,672 104,728,486
Cash in hand 25,106 5,982
754,378,988 318,788,218
22.01 On Fixed Deposit with Banks (DLICL) Tk. 7,141,460,856
Bank Asia Ltd. 149,502,312 147,655,259
DBH Finance Corp. Ltd 673,161,827 748,324,197
EXIM Bank Ltd. 2,014,262,002 1,761,901,367
Mercantile Bank Ltd. - 117,755,358
Mutual Trust Bank Ltd. 200,000,000 254,832,500
Southeast Bank Ltd. 1,189,525,179 923,254,724
Standard Bank Ltd. - 57,260,783
One Bank Ltd. 300,000,000 400,000,000
IDLC of Bangladesh Ltd. 795,415,051 2,257,737,899
United Finance Ltd. 428,723,485 467,011,250
Modhumoti Bank Ltd. 50,000,000 197,695,000
Eastern Bank Ltd. - 80,000,000
GSP Finance Co. (Bangladesh) Ltd. 5,471,000 5,000,000
The City Bank Ltd. 100,000,000 -
IFIC Bank Ltd. 150,000,000 -
IPDC Finance Ltd. 350,000,000 -
LankaBangla Finance Ltd. 485,400,000 -
Midland Bank Ltd. 100,000,000 -
NRB Bank Ltd. 50,000,000 -
Social Islami Bank Ltd. 100,000,000 -
7,141,460,856 7,418,428,337
22.02 On Fixed Deposit with Banks: (DLIC
Tk. 638,522,210
Securities Ltd.)
DBH Finance Corp. Ltd. - 101,841,250
Modhumoti Bank Ltd. 200,000,000 112,212,500
IDLC Finance Ltd. 438,522,210 -
638,522,210 214,053,750
83
Amount in Taka
2016 2015
22.03 On Current Account with Banks Tk. 309,787,535
Hongkong & Shanghai Banking Corporation - 3,049,651
Bangladesh Krishi Bank 160,440,581 169,704,635
Pubali Bank Ltd. 92,104,851 73,982,398
Rajshahi Krishi Unnyan Bank 32,513,351 33,242,400
Uttara Bank Ltd. 114,892 1,974,298
National Bank Ltd. 491,438 165,093
Sonali Bank Ltd. 753 753
Janata Bank Ltd. 7,146,131 10,943,364
Agrani Bank Ltd. 6,070,880 5,449,802
Rupali Bank Ltd. 14,112 14,112
Islami Bank Bangladesh Ltd. 207,063 207,063
Bank Asia Ltd. 126,427 126,427
Trust Bank Ltd. 8,084 8,084
Al-Arafah Bank Ltd. 6,250 6,250
Social Islami Bank Ltd. 1,534,905 1,165,260
Southeast Bank Ltd. 500 500
Jamuna Bank Ltd. 1,000 1,000
Standard Chartered Bank 7,437,650 7,034,313
Brac Bank Ltd. - 58,365
First Security Islami Bank Ltd. 5,000 5,000
Mercantile Bank Ltd. 1,000 1,000
Dhaka Bank Ltd. 1,562,667 -
309,787,535 307,139,768
22.04 On SND Account with Banks (DLICL) Tk. 916,848,367

Hongkong & Shanghai Banking Corporation - 161,113
Dutch Bangla Bank Limited 13,785,960 10,956,976
Bangladesh Krishi Bank 11,339,125 20,641,520
Pubali Bank Limited 667,090,350 671,696,016
Rajshahi Krishi Unnyan Bank 52,058,763 58,092,946
Uttara Bank Ltd. 16,971,265 15,600,621
The City Bank Ltd. 69,944 69,194
National Bank Ltd. 14,006,133 18,814,243
Premier Bank Ltd. - 688
Agrani Bank Ltd. 36,872,511 43,069,471
Sonali Bank Ltd. 2,402,146 3,097,667
Janata Bank Ltd. 7,712,864 9,861,749
Rupali Bank Ltd. 9,167,456 11,988,051
Islami Bank Bangladesh Ltd. 29,119,487 26,789,479
Dhaka Bank Ltd. 7,163,082 34,201
Mercantile Bank Ltd. 4,248,331 4,412,698
Bank Asia Limited 9,283,818 9,533,761
Jamuna Bank Ltd. 622,284 804,169
Al-Arafah Bank Ltd. 2,628,621 3,160,478
Mutual Trust Bank Ltd. 6,411,408 7,775,918
First Security Islami Bank Ltd. 7,658,494 12,639,935
EXIM Bank Ltd. 13,473,030 14,150,380
Modhumoti Bank Ltd. 106,162 104,609
Prime Bank Ltd. 306,297 332,936
NCC Bank Ltd. 1,171,313 1,816,168
Standard Bank Ltd. 702,481 711,432
84
Amount in Taka
2016 2015
UCBL 285,220 251,592

Farmers Bank Ltd. 2,151,777 2,705,377
NRB Bank Ltd. 40,045 -
916,848,367 949,273,388
22.05 On SND Account with Banks:

Tk. 115,831,672
(DLIC Securities Ltd.)
Pubali Bank Ltd. 55,492,615 104,681,660
EXIM Bank Ltd. 60,339,057 46,826
115,831,672 104,728,486
23.00 Fixed Assets Tk. 1,212,654,101
The amount consists of followings:
23.A Fixed Assets (DLICL) - (Annexure-B)
Tk. 1,211,364,810
Cost
Capital Work- In- Progress (Annexure-C) 1,043,665,407 1,125,749,691
Furniture & Fixture 108,395,030 72,235,736
Renovation 63,631,349 4,405,726
Computer Hardware & Software 67,338,561 64,975,374
IT Infrastructure 7,315,930 7,315,930
Data Center-IT Infrastructure 22,755,221 22,755,221
Electrical Equipment 51,308,468 50,594,953
Vehicles 151,898,757 158,098,348
Total Cost 1,516,308,723 1,506,130,979
Accumulated depreciation at the end of the
(304,943,913) (293,267,644)
year
Carrying Value at the end of the year 1,211,364,810 1,212,863,335
23.B Fixed Assets (DLIC Securities Ltd.) Tk. 1,289,291
(Annexure-D)
Cost
Computer, Hardware & Server 1,321,310 1,208,280
LED TV and Hanger 233,500 233,500
Furniture & Fixture 141,800 132,300
Electrical Equipment IP Phone Set 30,900 30,900
Office Equipment 1,200 1,200
Software 438,900 438,900
Total Cost 2,167,610 2,045,080
Accumulated depreciation at the end of the
(878,319) (489,820)
year
Carrying Value at the end of the year 1,289,291 1,555,260
24.00 Adjustment made during the year Tk. 112,971,388
Reserve for Unexpired Risk (DLICL - Group
112,971,388 135,638,742
Business)
112,971,388 135,638,742
This represents adjustments of over/under provisions of management expense, claims, and correction of prior- period material
errors, if any, against the opening balance of the Life Insurance Fund. To give fair view and more appropriate presentation of
financial position, the Company has adopted the accounting practice which is followed consistently by the Company.
85
Amount in Taka
2016 2015
25.00 Premium less reinsurance 5,839,610,925 5,547,539,152

Type of Premium Gross Premium RI Premium Net Premium
First Year Premium-OL 725,941,188 1,615,270 724,325,918
First Year Premium- GN-GRB 500,575,622 - 500,575,622
Sub-total 1,226,516,810 1,615,270 1,224,901,540
Renewal Premium-OL 2,208,002,841 3,146,401 2,204,856,440
Renewal Premium- GN-GRB 2,000,297,278 - 2,000,297,278
Sub-total 4,208,300,119 3,146,401 4,205,153,718
Group Insurance Premium 275,492,439 35,256,964 240,235,475
Health Insurance Premium 176,303,882 6,983,690 169,320,192
Sub-total 451,796,321 42,240,654 409,555,667
Total Tk. in 2016 5,886,613,250 47,002,325 5,839,610,925
Total Tk. in 2015 5,582,402,603 34,863,451 5,547,539,152
OL, GN-GRB and RI represent Ordinary Life, Gono -Grameen Bima and Reinsurance respectively.
26.00 Interest, dividend and rents Tk. 2,887,677,938
Delta Life Insurance Company Limited 2,850,286,532 3,067,637,078
DLIC Securities Limited 65,391,405 33,676,649
2,915,677,937 3,101,313,727
Less: Inter Company Dividend 27,999,999 -
26.A Interest, dividend and rents (DLICL) Tk. 2,850,286,532
Interest on Fixed Deposit Receipts (FDRs) 705,328,012 703,922,960
Interest on Debentures and Bonds 61,374,827 47,045,908
Interest on Policy and Project Loan 53,024,711 39,737,857
Interest and Commission on Bangladesh Govt. Treasury Bond (BGTB) 1,411,744,866 1,403,895,361
Interest on Short Notice Deposit (SND A/Cs) 17,680,349 25,011,371
Dividends on Shares 299,679,470 264,995,031
Dividend received from DLIC Securities
27,999,999 -
(Subsidiary Company)
Interest on Home Loan 669,131 826,423
Profit/ (Loss) on Sale of Shares 138,829,291 456,810,215
Interest on Motor & Bi cycle Loans - 2,854
Statutory Deposit with Bangladesh Bank (BGTB) - 571,130
Rental Income 133,955,876 124,817,968
2,850,286,532 3,067,637,078
26.B Interest, dividend and rents
Tk. 65,391,405
Interest on Short Notice Deposit (SND A/Cs) 4,313,054 12,175,897
Interest on Fixed Deposit Receipts (FDRs) 27,594,704 14,650,000
Dividends on Shares 29,216,924 4,095,592
Profit/ (Loss) on Sale of Shares 4,266,723 2,755,160
65,391,405 33,676,649
27.00 Other Income Tk. 31,652,979
The amount consists of followings:
Delta Life Insurance Company Limited 24,663,303 20,786,465
86
Amount in Taka
2016 2015
27.A Other income (DLICL) Tk. 24,663,303
Service Charge & others 1,426,208 1,042,705
Late Fees 20,653,225 17,058,205
Misc. Income 1,409,826 1,757,905
Profit/(Loss) on disposal of Fixed Assets 1,174,044 927,650
24,663,303 20,786,465
27.B Other income (DLIC Securities Ltd.) Tk. 6,989,676
BO Account Opening Charges 75,000 41,040
Brokerage Commission 6,914,676 5,757,855
6,989,676 5,798,895
28.00 Claims under policies (including provision

Tk. 4,887,223,840 4,245,971,384
for claims due or intimated), less reinsurance
Group Health
Particulars Ordinary Life GN-GRB Total
Insurance Insurance
By Death 61,239,983 29,174,151 84,853,549 - 175,267,683
By Maturity 1,107,959,763 1,275,047,469 3,930,582 - 2,386,937,814
By Survival 383,000,667 104,009,532 - - 487,010,199
By Hospitalization 3,307,948 - - 92,743,513 96,051,461
By Others 2,170,462 - 1,069,574 - 3,240,036
By Surrenders 165,983,323 10,664,453 11,146,619 - 187,794,395
Annuities 690,410 - 90,240 - 780,650
Bonus in Cash 965,533,583 569,154,426 - - 1,534,688,009
Sub-total 2,689,886,139 1,988,050,031 101,090,564 92,743,513 4,871,770,247
Profit Commission - - 15,453,593 - 15,453,593
Total Tk. in 2016 2,689,886,139 1,988,050,031 116,544,157 92,743,513 4,887,223,840
Total Tk. in 2015 2,103,722,841 1,970,786,003 95,075,617 76,386,923 4,245,971,384
29.00 Commission Tk. 883,907,717

The above amount has arrived at as under:
Ordinary Life 500,057,697 452,205,321
Gono-Grameen Bima 375,689,431 345,050,852
Group Insurance 5,485,026 4,573,191
Health Insurance 2,675,563 2,479,798
883,907,717 804,309,162
30.00 Salaries & Allowances Tk. 451,019,641
31.00 Traveling & Conveyances Tk. 8,326,766
DLIC Securities Limited 212,452 52,120
32.00 Auditors' Fees Tk. 511,750
Delta Life Insurance Company Limited 460,000 460,000
Total Consolidated 511,750 506,000
87
Amount in Taka
2016 2015
33.00 Legal and Professional fees (DLICL) Tk. 3,083,192
Legal Retainers' (in-house) fees and expenses for perusal of
different types office matters/files for vetting and provide legal 846,000 991,480
opinion and represents company in judicial matters.
Other legal & professional fees and expenses. 2,237,192 2,679,918
3,083,192 3,671,398
34.00 Advertisement and publicity Tk. 13,362,721

DLIC Securities Limited 121,495 -
35.00 Printing and Stationery Tk. 16,921,086

36.00 Office Rent Tk. 56,760,479

37.00 Bank Charges Tk. 34,981,476

38.00 Repairs & Maintenance Tk. 21,802,604

39.00 Telephone, Telex & Internet Tk. 7,368,717

40.00 Fees and subscriptions Tk. 3,807,122

41.00 Entertainment Tk. 453,843

DLIC Securities Limited 37,813 -
42.00 Staff Welfare Expenses Tk. 5,390,790

43.00 Depreciations Tk. 43,497,260

88
Amount in Taka
2016 2015
43.A Depreciation (DLICL) Tk. 43,108,761
Investment Properties (Annexure-A) 15,031,859 9,886,132
Fixed Assets (Annexure-B) 28,076,902 27,803,030
43,108,761 37,689,162
43.B Depreciation (DLIC Securities Ltd.) Tk. 388,499

Fixed Assets (Annexure-D) 388,499 489,820
388,499 489,820
44.00 CDBL Related Charges Tk. 846,386

45.00 Provision for income tax Tk. 242,744,696

45.A Provision for income tax (DLICL) Tk. 224,200,000

Provision for Income Tax - Current year 224,200,000 100,379,303
224,200,000 100,379,303
Provision for Taxation is based on taxable income determined under the Fourth Schedule of the Income Tax Ordinance,
1984 and best judgment of the management.
45.B Provision for income tax Tk. 18,544,696

Provision for Income Tax - Current year 18,551,115 11,650,162
Less: Adjustment of Over Provision of tax for the assessment year 2014-2015 6,419 -
18,544,696 11,650,162
46.00 Dividend Tk. 222,750,001

Delta Life Insurance Co. Ltd. 222,750,000 247,500,000
DLIC Securities Ltd. (Outsider's shareholders) 1 -
47.00 Capital expenditure commitment Tk. NIL

There was no capital expenditure commitment authorized by the Board as on December 31st, 2016.
48.00 Credit facility available to the company Tk. NIL

There was no credit facility available to the Company under any contract as on December 31st, 2016 other than trade credit
available in the ordinary course of business.
49.00 Expenses incurred in foreign currency Tk. 5,939,611

During the year under review, following
payments were made in foreign currencies:
For Reinsurance operation 5,939,611 19,879,749
For development of Insurance one core solution - 14,265,073
5,939,611 34,144,822
50.00 Companies Act, 1994, Schedule XI Part-II [Note-3(P) (VI) 5]

i) Number of employees drawing salary above Tk. 3000 per month 2,292 2,466
ii) Number of employees drawing salary Tk. 3000 and below per month 312 356
89
Amount in Taka
2016 2015
51.00 Payments/perquisites to directors/officers
51.01 The aggregate amounts paid/provided during the year in respect of directors and officers of the company (DLICL) as
defined in the Securities and Exchange Rules, 1987 are disclosed below:
Particulars 2016 2015

Directors Officers Directors Officers
Board Meeting Fee 477,250 - 649,750 -
Basic Salary - 234,201,595 - 283,508,808
Provident Fund Contribution - 19,292,904 - 20,940,466
House Rent - 77,579,522 - 85,421,436
Other Allowances - 117,983,153 - 29,084,544
Total 477,250 449,057,174 649,750 418,955,254
51.02 Money was not spent by the company for compensating any member of the board for special services rendered except as
stated above.
52.00 Employees' benefit plans

The Company, for its permanent employees, operates the following benefit schemes:
i) Contributory Provident Fund
ii) Gratuity Scheme
iii) Group Insurance
iv) Health Insurance
The company makes contribution towards provident fund, a defined benefit retirement plan. The provident fund is administered
by the trustees of the Delta Life Insurance Company Limited Employees PF Trust. The contribution paid or payable under the
schemes is charged to the revenue account during the period in which the employee renders the related service.
The company maintains a gratuity scheme for the employees. A Fund, namely, Delta Life Insurance Company Limited
Employees Gratuity Fund established in accordance with Part-C of First Schedule of the Income Tax Ordinance 1984, has
been accorded due recognition by the National Board of Revenue, Government of the People’s Republic of Bangladesh.
This scheme is approved by the National Board of Revenue (NBR) on 02 December 2015 vide nothi no. 08.01.0000.035.0
2.0034.2015/181.
53.00 Related party transactions

DLIC Securities Ltd. - a subsidiary company (please refer to note no. 15.05).
53.01 Key management personnel compensation

Even though it is very difficult to differentiate and exact the key personnel management in the organization's hierarchy
of the Company, generally, CEO, AMD, DMD and Line Managers not below the rank of Assistant Vice President (AVP),
including in-charges of servicing cells/centers & Zone Operation Center (ZOC) possess authority and responsibility for
planning and controlling the activities of the company, directly or indirectly.
The company's key management personnel compensation in total and for each of the following categories are stated
below:
a) Short Term Employee Benefits - Employee benefits (other than termination benefits) which fall due wholly within
twelve months after the end of the period in which the employees render service. Such as - salaries and bonuses for
current employees.
Development Staff Salaries 28,940,428 37,922,456
Bonuses 22,022,324 24,221,756
50,962,752 62,144,212
b) Post Employment Benefits - Employee benefits such as Gratuity, leave encashment.

Gratuity 16,666,241 14,174,091
16,666,241 14,174,091
90
Amount in Taka
2016 2015
c) Other Long Term Employee Benefits - -

- -
Employee benefits that is not due to be paid wholly within twelve months after the end of the period in which the employees
render the related service. Such as - long service benefits or sabbatical leave, jubilee or other long service benefits, long term
disability benefits. (No such benefits are available in the Company hence, it is not applicable).
d) Termination Benefits - -
- -
Employee benefits payable as result of either: (i) an entity's decision to terminate an employee's employment before
normal retirement date; or (ii) an entity's decision to accept voluntary redundancy in exchange for those benefits. (No such
event has occurred in the Company in 2016, hence, it is not applicable).
e) Share based payments - -

- -
No such scheme is available in the Company.
Total 67,628,993 76,318,303
54.00 Events after the reporting period

Out of the surplus available for shareholders as certified by the Actuary, Cash Dividend was proposed by the Board of
Directors subject to the approval of the shareholders at the 31st Annual General Meeting for the year 2016 as under:
Cash dividend: Cash Dividend at the rate of 20% for each share of Tk. 10 each to the tune of Tk. 247,500,000 on the paid
up capital of Tk. 1,237,500,000.
These financial statements do not reflect these appropriations as explained above (please refer to note no. 3.20).
55.00 Date of authorization for issue

These financial statements were authorized for issue on 03 May 2017 by the Board of Directors of the company.
91
Annexures
Investment Properties Annexure-A
94
As on December 31, 2016
Note: 15.07 / 43.A Amount in Taka
Cost Depreciation
Dep. Opening Adjustment/ Closing Carrying
Opening Addition Transfer Closing
Company Limited
Sl. No. Particulars Balance Charge for Disposal Balance

Balance as at during the to Bogra Balance as at Rate Value
as at the period during the as at

01/01/2016 year Building 31/12/2016
01/01/2016 year 31/12/2016
Delta Life Tower - (Corporate Office-Gulshan): Plot # 37, Road # 45 (South) & 90 (North), Gulshan Circle-2, Dhaka-1212 (14-storied Building- around 2,00,929
sft. excluding 3 basements)
1 Land 112,112,337 - - 112,112,337 - - - - - 112,112,337
Building &
2 413,029,319 - - 413,029,319 1% 12,333,129 4,130,293 - 16,463,422 396,565,897
Construction
3 Lift 15,126,096 - - 15,126,096 5% 2,250,581 756,305 - 3,006,886 12,119,210
4 Generator 28,536,929 - - 28,536,929 5% 3,741,323 1,426,846 - 5,168,169 23,368,760
5 Solar Plant 7,486,530 - - 7,486,530 10% 2,172,563 748,653 - 2,921,216 4,565,314
6 Central AC 50,168,836 - - 50,168,836 5% 4,108,346 2,508,442 - 6,616,788 43,552,048
7 Fire Alarm 311,416 - - 311,416 5% 13,057 15,571 - 28,628 282,788
(A) Sub-Total 626,771,463 - - 626,771,463 24,618,999 9,586,110 - 34,205,109 592,566,354
Delta Life Tower - (Khulna): House # 16/17, M.A. Bari Road, Sonadanga, Khulna (22-storied Building-around 94,495 sft. excluding 2 basements)
1 Land 6,058,760 - - 6,058,760 - - - - - 6,058,760
Building &
2 382,754,710 - - 382,754,710 1% - 3,827,547 - 3,827,547 378,927,163
Construction
3 Lift 15,092,538 - - 15,092,538 5% - 754,627 - 754,627 14,337,911
4 Generator 15,151,500 - - 15,151,500 5% - 757,575 - 757,575 14,393,925
5 Solar Plant 1,060,000 - - 1,060,000 10% - 106,000 - 106,000 954,000
(B) Sub-Total 420,117,508 - - 420,117,508 - 5,445,749 - 5,445,749 414,671,759
Total on 31.12.2016 (A+B) 1,046,888,971 - - 1,046,888,971 24,618,999 15,031,859 - 39,650,858 1,007,238,113
Total on 31.12.2015 1,024,314,211 28,511,729 (5,936,969) 1,046,888,971 - 15,806,784 9,886,132 (1,073,917) 24,618,999 1,022,269,972
Delta Life : Prosperous Life
Fixed Assets Schedule Annexure-B
as at December 31, 2016
Note: 23.A / 43.A Amount in Taka

Cost Depreciation
Adjustment/
Adjustment/ Closing
Sl. Opening Addition Transfer/ Closing Dep. Opening Carrying
Particulars Charge for Disposal Balance as
No. Balance as at during the Disposal Balance as at Rate Balance as Value
the period during the at 31/12/2016
01/01/2016 year during the 31/12/2016 at 01/01/2016
year
year
Capital Work in
1 12,850,589 (94,934,873) 1,043,665,407 N/A - - - - 1,043,665,407
Progress (Building) 1,125,749,691
2 Furniture & Fixtures 72,235,736 37,438,802 (1,279,508) 108,395,030 10% 59,660,076 2,496,858 (1,273,587) 60,883,347 47,511,683
3 Renovation 4,405,726 60,211,534 (985,911) 63,631,349 20% 2,753,354 500,012 (985,911) 2,267,455 61,363,894
Computer Hardware
4 64,975,374 5,011,280 (2,648,093) 67,338,561 25% 46,749,650 7,776,745 (2,641,626) 51,884,769 15,453,792
& Software
5 IT Infrastructure 7,315,930 - - 7,315,930 4% 264,635 292,637 - 557,272 6,758,658
Data Center - IT
6 22,755,221 - - 22,755,221 20% 3,728,325 4,551,044 - 8,279,369 14,475,852
Infrastructure
7 Electrical Equipment 50,594,953 1,817,692 (1,104,177) 51,308,468 20% 46,923,586 1,458,472 (1,104,177) 47,277,881 4,030,587
8 Vehicles 158,098,348 4,195,744 (10,395,335) 151,898,757 20% 133,188,018 11,001,134 (10,395,332) 133,793,820 18,104,937
Total-2016 1,506,130,979 121,525,641 (111,347,897) 1,516,308,723 293,267,644 28,076,902 (16,400,633) 304,943,913 1,211,364,810
Total-2015 1,323,532,910 228,897,720 (46,299,651) 1,506,130,979 272,682,419 27,803,030 (7,217,805) 293,267,644 1,212,863,335
95
Company Limited
Capital Work-In-Progress (CWIP) Annexure- C
96
This represents of expenses incurred for various works under construction and installation.
The break-up of the figure is as under.
Company Limited
Note: 23.A
Purchase of Works at Corporate Building

Cost of
Office space at Office
Construction Office
Doctor’s Tower Renovation Computer Total
Particulars of Bogra Office Renovation
(8th, 9th & 10th Gulshan Software
Building Doctor’s Tower
Floor) Building
Taka Taka Taka Taka Taka Taka
A. Land 10,019,946 - - - - 10,019,946
B. Opening balance as on 01.01.2016
521,117,735 473,002,540 73,776,984 10,097,553 36,819,931 1,114,814,743
(Contractor’s/ Supplier’s Bills and Installments)
Add: Bills/Installments paid and advance
- - 7,278,777 3,781,559 2,705,255 13,765,591
adjusted during the year
Land transferred from Fixed Assets - - - - - -
Sub total (i) 531,137,681 473,002,540 81,055,761 13,879,112 39,525,186 1,138,600,280
C. Advance - - 915,002 - - 915,002
Advance paid during the year - - - - - -
Less: Advance adjusted during the year - - (915,002) - - (915,002)
Sub total (ii) - - - - - -
Total (i+ii) 531,137,681 473,002,540 81,055,761 13,879,112 39,525,186 1,138,600,280
D. Transfer to Fixed Assets (iii) - - 81,055,761 13,879,112 - 94,934,873
Balance as on 31st December 2016 (i+ii-iii) 531,137,681 473,002,540 - - 39,525,186 1,043,665,407
Balance as on 31st December 2015 531,137,681 473,002,540 74,691,986 10,097,553 36,819,931 1,125,749,691
Fixed Assets Schedule Annexure-D
DLIC Securities Ltd.
Note: 23.B / 43.B Amount in Taka

Cost Depreciation
Closing
Adjustment/
Sl. Closing Dep. Opening Adjustment/ Balance Carrying
Particulars Opening Addition Transfer/ Charge
No. Balance Rate Balance Disposal as at Value
Balance as at during the Disposal for the
as at as at during the 31/12/2016
01/01/2016 year during the period
31/12/2016 01/01/2016 year
year
1 Furniture & Fixtures 132,300 9,500 - 141,800 10% 13,230 12,461 - 25,691 116,109
2 LED TV & Hanger 233,500 - - 233,500 25% 58,375 43,781 - 102,156 131,344
3 Computer Hardware 1,208,280 113,030 - 1,321,310 25% 302,070 244,827 - 546,897 774,413
4 Electrical Equipment 30,900 - - 30,900 20% 6,180 4,944 - 11,124 19,776
5 Office Equipment 1,200 - - 1,200 20% 240 192 - 432 768
6 Software 438,900 - - 438,900 25% 109,725 82,294 - 192,019 246,881
Total-2016 2,045,080 122,530 - 2,167,610 489,820 388,499 - 878,319 1,289,291
Total-2015 1,558,780 486,300 - 2,045,080 - 489,820 - 489,820 1,555,260
97
Company Limited

Directors’ Responsibility Statement
In terms of Section 62 of the Insurance Act 2010, we certify that:

1. The value of investment in shares and debentures has been taken at cost and in some cases at
Fair Value;
2. The value of all assets as shown in the Balance Sheet and as classified on Form “AA” annexed
have been duly reviewed as at 31st December, 2016;
3. In our belief, the said assets have been set forth in the Balance Sheet at amounts not exceeding
their realizable, carrying or market values under the several headings as enumerated; and
4. All expenses of management in respect of Life Insurance Business transacted by the Company in
Bangladesh have been fully debited to the Life Revenue Account as expenses.

98
Certificate of CEO & CFO

Under Corporate Governance guidelines issued by
Bangladesh Securities and Exchange Commission
(Condition No. 6 Notification 7 August 2012 No. Sec/CMRRCD/2006-158-Admn/44)
The Board of Directors

Delta Life Insurance Company Ltd.
Delta Life Tower
Plot # 37, Road # 90, Gulshan Circle-2, Dhaka-1212
We certify that,
i) We have reviewed the Financial Statements for the year 2016 and to the best of our
knowledge and belief;
a) These statements do not contain any materially untrue statement or omit any material
fact or contain an statement that might be misleading;
b) These statements together present a true and fair view of the Companys affairs and
are in compliance with existing accounting standards and applicable laws.
ii) There are to the best of our knowledge and belief, no transactions entered into by the
Company during the year 2016 which are fraudulent, illegal or violation of the Companys
code of conduct.
Uttam Kumar Shadhu, FCMA, FCS Adeeba Rahman, ACII (UK)

Deputy Managing Director & CFO Chief Executive Officer (CC)
99
Auditor’s Report
and
Financial Statements
of DLIC Securities
INDEPENDENT AUDITOR’S REPORT TO THE

SHAREHOLDERS
We have audited the annexed Statement of Financial Position of DLIC SECURITIES LIMITED, as on
December 31, 2016 and its Statement of Profit or Loss and Other Comprehensive Income, Statement of Cash
Flow and Statement of Changes in Equity for the year ended as on that date together with the accompanying
Notes thereto.
Respective Responsibilities of the Management and the Auditors:
The preparation of this Financial Statement is the responsibility of the company’s management. Our
responsibility is to express an independent opinion on this Financial Statement based on our audit.
Scope:
We conducted our audit in accordance with BSA. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
Opinion:
In our opinion, the Financial Statements are prepared and maintained according to the Bangladesh Accounting
Standard (BAS) and reported in accordance with the Bangladesh Financial Reporting Standard (BFRS), give
a true and fair view of the state of the company’s affairs as of December 31, 2016 and of the results of its
operations and its cash flows for the year then ended and comply with the Companies Act, 1994.
We also report that:
(i) We have obtained all the information, explanations and documents which to the best of our
knowledge and belief were necessary for the purpose of our audit and made due verification thereof.
(ii) The Company management has followed relevant provision of law and rules in managing the affairs
of the Company and that proper books of account, records and other statutory books have been
properly maintained.
(iii) The Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive
Income, Statement of Changes in Equity are in agreement with the said books of account
maintained by the Company and examined by us while the Cash Flow Statement conforms with the
presentation laid out in the Bangladesh Financial Reporting Standard (BFRS); and
(iv) The expenditure incurred and payments made were for the purpose of the Company’s business for
the year.
(SHAFIQ BASAK &CO.)

CHARTERED ACCOUNTANTS
102
DLIC SECURITIES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2016
Taka Taka
Particulars Notes
31.12.2016 31.12.2015
ASSETS
Non Current Assets:
Property, Plant & Equipment 3.00 1,289,291.00 1,555,260.00
Preliminary Expenses 4.00 771,581.00 1,028,775.00
2,060,872.00 2,584,035.00
Current Assets:
Investment in DSE Ltd. 5.00 320,200,000.00 320,200,000.00
Investment in Shares (At Cost) 6.00 412,963,443.00 397,389,950.00
Security Deposit 200,000.00 200,000.00
Advance, Deposit & Prepayment 7.00 25,107,465.00 7,230,395.00
Receivable from Client 18,853.00 242,433.00
Receivable from DSE 133,944,277.00 115,076.00
FDR 8.00 638,522,210.00 214,053,750.00
Cash & Bank Balances 9.00 115,856,778.00 104,734,468.00
1,646,813,026.00 1,044,166,072.00
TOTAL ASSETS: 1,648,873,898.00 1,046,750,107.00
EQUITY AND LIABILITIES
Shareholders Equity:
Issued & Paid up Capital 10.00 1,400,000,000.00 1,000,000,000.00
Retained Earnings 47,810,424.00 14,672,566.00
1,447,810,424.00 1,014,672,566.00
Current Liabilities:
For Expenses & Other Finance 11.00 6,984,590.00 885,099.00
Sundry Creditors 12.00 131,088,156.00 3,353,235.00
Provision for Taxation 13.00 32,800,728.00 14,476,621.00
Provision for Diminution in Value of Invest-
- 13,362,586.00
ment in Share
IPO Control Account Payble 30,190,000.00 -
201,063,474.00 32,077,541.00
TOTAL EQUITY AND LIABILITIES 1,648,873,898.00 1,046,750,107.00
( Swapan Kumar Sarkar, FCA ) ( M. Abdullah Saadi )

Chairman Managing Director (CC)
AUDITORS' REPORT TO THE SHAREHOLDERS

Please see annexed report of date
(SHAFIQ BASAK & CO.) Dated: Dhaka

Chartered Accountants April 03, 2017
103

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2016
Taka Taka
Particulars Notes
31.12.2016 31.12.2015
Revenue Earned:
Brokerage Income 14.00 6,989,676.00 5,798,895.00
6,989,676.00 5,798,895.00
Less: Administrative & Other Expenses
Salary & Allowances 1,586,269.00 1,217,183.00
Festival Bonus 204,790.00 106,400.00
Staff Welfare Expenses 25,246.00 13,596.00
Office Rent 810,000.00 810,000.00
VAT on Office Rent 101,250.00 72,900.00
Service Charge 60,000.00 60,000.00
Conveyance 143,305.00 34,145.00
Stationery 13,308.00 49,043.00
Telephone & Mobile Charges 28,146.00 16,136.00
Travelling & Conveyance 69,147.00 17,975.00
Providend Fund 171,408.00 61,080.00
Bank Charges 152,156.00 143,426.00
Audit Fee including VAT 51,750.00 46,000.00
DSE Howla Charges 550.00 -
DSE Laga Charges 556,649.00 677,665.00
CDBL Charges 455,810.00 362,045.00
DSE Purpose Expenses 154,962.00 67,568.00
BSEC Renewal Fee 130,000.00 26,000.00
RJSC Fees 48,400.00 50,000.00
DSE Authorised Representative Fees - 15,000.00
Stock Broker & Dealer Reg. Fee 20,000.00 20,000.00
Fees & Renewal 28,300.00 -
Advertisement Expenses 121,495.00 -
Software Preparation 105,000.00 109,725.00
Telnet Monthly OTC Charges 176,822.00 175,500.00
Entertainment 37,813.00 -
Office Maintenance 11,900.00 10,930.00
General Expenses 54,200.00 28,402.00
Miscellaneous Expenses 96,744.00 58,395.00
Written Off Preliminary Expenses 257,194.00 257,194.00
Depriciation 388,499.00 489,820.00
6,061,113.00 4,996,128.00
Profit before Provision & Tax 928,563.00 802,767.00
Add: Interest Income 31,907,758.00 26,825,897.00
Gain on sale of Investment in Share 4,266,723.00 2,755,160.00
Dividend Income 29,216,924.00 4,095,592.00
Total Profit before Povision & Tax 66,319,968.00 34,479,416.00
Less: Provision for Diminution in Value of Investment in Share - 13,362,586.00
Less: Provision for Taxation 13.01 18,544,696.00 11,650,162.00
Net Profit after tax 47,775,272.00 9,466,668.00



104

STATEMENT OF CASH FLOWS
Taka Taka
Particulars
31.12.2016 31.12.2015
A. CASH FLOW FROM OPERATING ACTIVITIES:

Brokerage & Other Income 72,381,081.00 39,475,544.00
Administrative Expenses (5,415,420.00) (4,249,114.00)
66,965,661.00 35,226,430.00
Changes in Current Assets and Liabilities

(Increase)/Decrease in Current Assets: (591,524,644.00) (573,882,578.00)
Increase/(Decrease) in Current Liabilities: 158,203,822.00 (19,588,995.00)
(433,320,822.00) (593,471,573.00)
Net Cash Flow from Operating Activities (366,355,161.00) (558,245,143.00)
B. CASH FLOW FROM INVESTING ACTIVITIES:

Fixed Assets (122,530.00) (486,300.00)
Net Cash Flow from Investing Activities (122,530.00) (486,300.00)
C. CASH FLOW FROM FINANCING ACTIVITIES:

Interim Dividend Paid (22,399,999.00) -
Share Capital 400,000,000.00 600,000,000.00
Net Cash Flow from Financing Activities 377,600,001.00 600,000,000.00
NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENT

D. 11,122,310.00 41,268,557.00
(A+B+C)
Opening Cash & Bank Balance 104,734,468.00 63,465,911.00
Closing Cash & Bank Balance 115,856,778.00 104,734,468.00



105

STATEMENT OF CHANGES IN EQUITY
Particulars Share Capital Retained Earning Total (Taka)

Balance as on December 31, 2015 1,000,000,000.00 14,672,566.00 1,014,672,566.00
Allotment made during the year 400,000,000.00 - 400,000,000.00
Provision for Diminution in Value of Investment in
- 13,362,586.00 13,362,586.00
Share reversed
Inteirm Dividend (Note: 15.00) - (28,000,000.00) (28,000,000.00)
Net Profit after tax - 47,775,272.00 47,775,272.00
Balance as of December 31, 2016 1,400,000,000.00 47,810,424.00 1,447,810,424.00
FOR THE YEAR ENDED 31 ST DECEMBER, 2015
Particulars Share Capital Retained Earning Total (Taka)

Balance as on December 31, 2014 400,000,000.00 5,205,898.00 405,205,898.00
Paid up Capital 600,000,000.00 - 600,000,000.00
Net Profit after tax - 9,466,668.00 9,466,668.00
Balance as of December 31, 2015 1,000,000,000.00 14,672,566.00 1,014,672,566.00



106

REPORTS ON THE FINANCIAL STATEMENTS
BASED ON
BANGLADESH FINANCIAL REPORTING STANDARDS (BFRS)
FOR THE YEAR ENDED DECEMBER 31, 2016.
1.00 Legal status and nature of the company-Disclosure under BAS 1 “Presentation of Financial
Statement”.
1.01 Company Profile:
DLIC Securities Limited was incorporated on July 07, 2013 as a public limited company with
the Registrar of Joint Stock Companies and Firms, Dhaka under the Companies Act, 1994
bearing registration No C - 110106/13.
1.02 Nature of Business Operations:
The main activities of the company is to act as member of stock exchanges and to carry on
the business of brokers, stocks, shares, securities, bonds, debentures relation a stock and
securities dealing and other services as mention in the Memorandum & Articles of Association
of the company.
1.03 Address of Registered Office:
The registered head office of the Company is located at Delta Life Tower (9th Floor), Plot # 37,
Road # 45 (South) & 90 (North), Gulshan-2, Dhaka-1212.
2.00 Specific Accounting Policies - Disclosure under BAS 1 “Presentation of Financial Statements”
2.01 Basis of preparation and presentation of the Financial Statements:
The financial statements have been prepared and the disclosures of information made in
accordance with the requirements of the Companies Act 1994 and International Accounting
Standards (IASs) adopted by the Institute of Chartered Accountants Bangladesh (ICAB), as
Bangladesh Accounting Standards (BAS) & Bangladesh Financial Reporting Standards (BFRS).
The Balance Sheet and Income Statement have been prepared according to BAS-1 Presentation
of Financial Statement based on accrual basis of accounting following going concern assumption
under Generally Accepted Accounting Principles (GAAP) and Cash Flow Statement according to
BAS-7 Cash Flow Statement.
2.02 Accounting Convention and Assumption:
The Financial Statements are prepared under the “Historical Cost” convention.
2.03 Principal Accounting Policies:
The specific accounting policies have been selected and applied by the Company’s
management for significant transactions and events that have a material effect within the
framework for the preparation and presentation of financial statements. Financial Statements
have been prepared and presented in compliance with BAS-1 Preparation of Financial
Statements. Financial statements of the previous year were prepared according to the same
accounting principles. Compared to the previous year, there were no significant changes
in the accounting and valuation policies affecting the financial position and performance of
the company. However, changes made to the presentation are explained in the note for the
respective item(s).
107
2.04 Components of Financial Statements:
1. Statement of Financial Position as at December 31, 2016.

2. Statement of Profit or Loss and Other Comprehensive Income for the year ended December 31, 2016.
3. Statement of Cash Flows for the year ended December 31, 2016.
4. Statement of Changes in Equity for the year ended December 31, 2016.
5. Notes, Comprising a Summary of Significant Accounting Policies and other Explanatory notes.
2.05 Application of Bangladesh Accounting Standards (BAS’s):
Following BAS’s are applicable for the preparation and presentation of financial statements for
the year under report.
BAS – 1 Presentation of Financial Statements

BAS – 7 Statement of Cash Flows
BAS – 8 Accounting Policies, Changes in Accounting Estimates and Errors
BAS – 10 Events after the Financial Position date
BAS – 12 Income Taxes
BAS – 16 Property, Plant and Equipment
BAS – 18 Revenue
BAS – 37 Provisions, Contingent Liabilities and Contingent Assets.
2.06 Tangible Fixed Assets: Property, Plant and Equipment (BAS-16):
Tangible fixed assets are accounted for according to BAS-16 Property, Plant and Equipment
at historical cost less cumulative depreciation. Assets are depreciated according to the
diminishing balance method.
2.07 Depreciation of the fixed assets:
Depreciation is provided on diminishing method on the cost at which the asset is carried in the
books of account.
Depreciation continues to be provided until such time as the written down value is reduced to
Taka one.
Depreciation of an asset begins when it is available for use. No depreciation is charged on

asset deleted during the year.
The rates at which assets are depreciated per annum, depending on the nature and estimated
useful life of assets are given below:
Category of Assets Rate

Computer, PC and Sarver 25 %
LED TV and Hanger 25 %
Furniture & Fixture 10 %
Electric Equipment IP Phone Set 20 %
Office Equipment 20 %
Software 25%
Depreciation has been charged to Operational Expenses and Administrative Expenses

proportionately on a consistent basis.
108
2.08 Investment in Shares:
As per requirements of Bangladesh Accounting Standards (BAS)-39, investment in shares

falls either under “at fair value through Statement of Comprehensive Income” or under
“available for sale” where any change in the fair value at the year end is taken to Statement of
Comprehensive Income. DLIC Securities recognizes its investment in shares as per BAS-39
and accounted for the required provision for diminution in Value of Investment in Share in the
Statement of Comprehensive Income.
2.09 Accounts Receivable:
Accounts Receivables are recognized at cost which is the fair value of the consideration given.
2.10 Cash & Cash Equivalents:
Cash and cash equivalents include Cash in hand, Cash at banks, term deposit, government
treasury bills etc. which are available for use by the company without any restrictions. There is
an insignificant risk of change in value of the same.
2.11 Creditors and Accrued Expenses:
Provision:
The preparation of financial statements in conformity with BAS-37 Provisions, Contingent

Liabilities and Contingent Assets requires management to make estimates and assumptions
that affect the reported amounts of revenues and expenses, assets and liabilities during and at
the date of financial statements.
In accordance with the guidelines as prescribed by BAS-37, provisions were recognized in the
following situations:
l When the company has a present obligation as a result of past events;
l When it is probable that an out flow of resources embodying economic benefits will be
required to settle the obligation; and
l Reliable estimates can be made of the amount of the obligation.
The provisions in the Statement of Financial Position at an appropriate level have been shown
with regard to an adequate provision for risks and uncertainties. An amount recorded as a
provision represented the best estimate of the probable expenditure required to fulfill the
current obligation on the Statement of Financial Position date. Other provisions are valued
in accordance with BAS-37 Provisions, Contingent Liabilities and Contingent Assets. Other
provisions comprise all recognizable risks from uncertain liabilities and anticipated losses from
pending transactions.
2.12 Taxation (BAS-12):
Income Tax
The company is a Public Limited Company in terms of the Income Tax Ordinance 1984 and
Income Tax is applicable @ 35% on operating and other income, 20% on dividend income &
10% on capital gain.
Deferred Tax
Deferred Tax has not been considered for immateriality.
109
2.13 Contingent Liabilities and Assets:
Contingent liabilities are current or possible obligations, arising from past events and whose
existence is due to the occurrence or non occurrence of one or more uncertain future events
which are not within the control of the company. In accordance with BAS-37 Provisions,
Contingent Liabilities and Contingent Assets they are disclosed in notes to the financial
statements.
2.14 Revenue Recognition:
Recognition In compliance with the requirements of BAS-18 Revenue, revenue is recognized

only when;
a) Service is recognized.
b) Interest income is accrued on a time basis by reference to the principal outstanding at the
effective interest rate applicable.
c) Other non-operating income is recognized only when relevant cash flow received.
2.15 Cash Flow Statements:
Statements of Cash Flow is prepared principally in accordance with BAS-7 Cash Flow
Statement and the cash flows from operating activities have been presented under direct
method as required by the Securities and Exchange Rules 1987 and considering the provisions
that “Enterprises are Encouraged to Report Cash Flow From Operating Activities using
The Direct Method”.
110
Taka Taka
31.12.2016 31.12.2015
3.00 Property, Plant & Equipment:

Computer, PC and Sarver 774,413.00 906,210.00
LED TV and Hanger 131,344.00 175,125.00
Furniture & Fixture 116,109.00 119,070.00
Electric Equipment IP Phone Set 19,776.00 24,720.00
Office Equipment 768.00 960.00
Software 246,881.00 329,175.00
1,289,291.00 1,555,260.00
3.01 Movement of Fixed Assets:

Opening cost value 2,045,080.00 1,558,780.00
Add: Addition during the year 122,530.00 486,300.00
Total Cost Value 2,167,610.00 2,045,080.00
Less: Accumulated Depreciation at Beginning 489,820.00 -
1,677,790.00 2,045,080.00
Less: Depreciation during the year 388,499.00 489,820.00
Written Down Value as on December 31, 2016 1,289,291.00 1,555,260.00
4.00 Preliminary Expenses:

Company formation Fee paid to RJSC 696,581.00 928,775.00
BSEC Permission Fee 75,000.00 100,000.00
771,581.00 1,028,775.00
5.00 Investment in DSE Ltd.: 320,200,000.00 320,200,000.00
The Above amount paid to Dhaka Stock Exchange Ltd as Investment for Purchases of one share (Member-
ship) of Dhaka Stock Exchange Ltd.
During the year under consideration Dhaka Stock Exchange Limited has allotted 72,15,106 ordinary shares
of Tk.10.00 each against existing 01(one) ordinary share in pursuance of scheme section 3.1.4 of the scheme
Demutualization of DSE. Vide allotment no.10043-243 dt. 10-10-2013 in following manner:
Shares Allotted
DSE transferred 40% ordinary shares of Tk. 10/- 60% Ordinary Shares were credited to
Total Shares
each directly to the credit of the Beneficiary Owner’s blocked accounts as per provisions of the
account of the Company. Exchange Demutualization ACT, 2013.
7,215,106
2,886,042 4,329,064 (Seven million two
(Two million eight hundred eighty six thousand (Four million three hundred twenty hundred fifteen
and forty two) nine thousand and sixty four) thousand and one
hundred six)
6.00 Investment in Shares:

Quoted Shares(Note- 6.01) 412,963,443.00 397,389,950.00
412,963,443.00 397,389,950.00
6.01 Quoted Shares

Name of Companies Acquisition Cost Acquisition Cost
Acmelab 15,468,997.20
Eastern Bank Limited 3,222,601.94 3,222,599.00
Far Chemicals Industries Ltd 559,246.21 559,246.00
Fortune 102,470.00 -
Pubali Bank Limited 393,610,127.55 393,608,105.00
412,963,443.00 397,389,950.00
111
Taka Taka
31.12.2016 31.12.2015
6.02 Provision for Share Value Fluctuation Accounts - 13,362,586.00
Provision for share value fluctuation was made in the past years for diminution in the value of shares based on
year end all share price Index of Dhaka Stock Exchange (DSE). In view of present upward trend persistent in
the value of shares of DSE, the provision made is not considered necessary and written back.
Market Value of Quoted Shares 445,326,668.90 384,027,364.00

Gain/(Loss) On Marketable Securities (Unrealized):
Unrealized Gain/(Loss) Position (Closing) 32,363,226 (13,362,586)
Unrealized Gain/(Loss) Position (Opening) (13,362,586) -
7.00 Advance, Deposit & Prepayments:

Advance Against Office Rent 688,500.00 749,250.00
Advance Tax Paid (Note: 7.01) 24,418,965.00 6,481,145.00
25,107,465.00 7,230,395.00
7.01 Advance Tax Paid
Opening Balance 6,481,145.00 1,810,275.00
Add: Addition during the year
Advance Tax on Commission Income 1,113,343.00 1,166,464.00
Advance Income Tax on Interest Income 3,197,490.00 2,685,288.00
Tax Deducted on Dividend Income 5,843,385.00 819,118.00
Tax Paid for the Assessment Year 2014-15 8,715.00 -
Tax Paid for the Assessment Year 2015-16 1,016,184.00 -
Tax Paid for the Assessment Year 2016-17 6,979,292.00 -
24,639,554.00 6,481,145.00
Less: Adjustmet for the assessment year 2014-15 220,589.00 -
24,418,965.00 6,481,145.00
8.00 FDR:
Modhumoti Bank Limited A/C No- 0055 - 112,212,500.00
Delta Brac Housing Finance Corporation Ltd. A/C No-146064 - 101,841,250.00
IDLC A/C NO.-10452232288301 206,761,105.00 -
IDLC A/C NO.-10752232288301 206,761,105.00 -
IDLC A/C NO.-10252232288301 25,000,000.00 -
Modhumoti Bank Limited A/C No- 461 200,000,000.00 -
638,522,210.00 214,053,750.00
9.00 Cash & Bank Balances:

Cash in Hand 25,106.00 5,982.00
Cash at Bank at Pubali Bank Limited A/C No - 3555102002603 10,190,906.00 29,559,691.00
Cash at Bank at Pubali Bank Limited A/C No - 2905102001086 44,755,016.00 61,139,112.00
Cash at Bank at Pubali Bank Limited A/C No - 1090 546,693.00 13,982,857.00
Cash at Bank at Exim Bank Ltd A/C No-0764 60,339,057.00 46,826.00
115,856,778.00 104,734,468.00
10.00 Share Capital:
a) Authorised Capital: 2,500,000,000.00 2,500,000,000.00

(250,000,000 Ordinary Shares of TK.10 each)
2,500,000,000.00 2,500,000,000.00
b) Issued & Paid up Capital: 1,400,000,000.00 1,000,000,000.00
(140,000,000 Ordinary Shares of TK.10 each)

1,400,000,000.00 1,000,000,000.00
112
Taka Taka
31.12.2016 31.12.2015
c) Percentage of Share holdings as on December 31, 2016.

Name of Share Holders No of Shares Amount Percentage Percentage
i) Corporate:
Delta Life Insurance Company
139,999,994 1,399,999,940.00 99.999995714 99.999995
Limited
ii) Individual:
Mr. Swapan Kumar Sarkar, FCA 1 10.00 0.000000714 0.000001
Brig. Gen M. Mosharraf Hussain (Rtd) 1 10.00 0.000000714 0.000001
Mr. M. Abdullah Saadi 1 10.00 0.000000714 0.000001
Mr. Md. Hafizur Rahman Khan 1 10.00 0.000000714 0.000001
Dr. Md. Nazrul Islam 1 10.00 0.000000714 0.000001
Mr. M. Anisul Haque, FCMA 1 10.00 0.000000714 0.000001
140,000,000 1,400,000,000.00 100.00 100.00
11.00 For Expenses and Other Finance:

Audit Fee Payable including VAT 69,000.00 46,000.00
House Rent and Service Charge Payable - 404,625.00
VAT on House Rent Payable 64,800.00 36,450.00
AIT on House Rent Payable 20,250.00
AIT on Interim Dividend Payable on Unpaid Dividend 5,600,000.00 -
Payable to DSE 693,688.00 97,346.00
CDBL Charges Payable 407,201.00 184,194.00
Salary & Allowances Payable 129,651.00 103,920.00
Providend Fund Payable - 12,564.00
6,984,590.00 885,099.00
12.00 Sundry Creditors:

Payable to Client 5,932,819.00 3,353,235.00
Payable to Delta Life Insurance Co. Ltd 125,155,336.00 -
Unpaid Interim Dividend 1.00 -
131,088,156.00 3,353,235.00
13.00 Income Tax Provision:
Opening Balance 14,476,621.00 2,826,459.00
For the Ass. Year 2014-2015 227,008 227,008.00
For the Ass. year 2015-2016 2,599,451 2,599,451.00
For the Ass. year 2016-2017 11,650,162 -
Add: Provision Made During the year ( Note - 13.01) 18,551,115.00 11,650,162.00
33,027,736.00 14,476,621.00
Less: Adjustmet for the assessment year 2014-15 227,008.00 -
32,800,728.00 14,476,621.00
13.01 Income Tax Provision made during the year

Calculation is as Under:
On Business Income on the basis of deducted at source 1,113,343.00 1,166,464.00
On Capital Gain @ Tk. 10% 426,672.00 275,516.00
On Dividend Income @ Tk. 20% 5,843,385.00 819,118.00
On Interest Income @ Tk. 35% 11,167,715.00 9,389,064.00
Total Current year tax 18,551,115.00 11,650,162.00
Less: Adjustment of Over Provision of tax for the assessment year 2014-15 6,419.00 -
18,544,696.00 11,650,162.00
113
Taka Taka
31.12.2016 31.12.2015
14.00 Brokerage Income:

Brokerage Commission 6,914,676.00 5,757,855.00
BO Account Opening & Renewal Fee & IPO Service 75,000.00 41,040.00
6,989,676.00 5,798,895.00
15.00 Inteirm Dividend:
The Company paid an Interim Dividend @ 2% i.e Tk. 0.2 per share of Tk. 10/-each to the share holders of
the Company for the period of nine months ended on September 30, 2016 against the Paid Up Capital of
140,000,000 nos. of shares.



114
PROPERTY, PLANT & EQUIPMENT SCHEDULE AT DECEMBER 31, 2016
SCHEDULE- 01:
COST DEPRECIATION
Depreciation W.D.V. At RATE
PARTICULARS At Addition Dur- At At Total At
During the 31.12.2016 %

01.01.2016 ing the year 31.12.2016 01.01.2016 31.12.2016
year
Computer, PC and Server 1,208,280.00 113,030.00 1,321,310.00 302,070.00 244,827.00 546,897.00 774,413.00 25
LED TV and Hanger 233,500.00 - 233,500.00 58,375.00 43,781.00 102,156.00 131,344.00 25
Furniture & Fixture 132,300.00 9,500.00 141,800.00 13,230.00 12,461.00 25,691.00 116,109.00 10
Electric Equipment IP Phone Set 30,900.00 - 30,900.00 6,180.00 4,944.00 11,124.00 19,776.00 20
Office Equipment 1,200.00 - 1,200.00 240.00 192.00 432.00 768.00 20
Software 438,900.00 - 438,900.00 109,725.00 82,294.00 192,019.00 246,881.00 25
TOTAL TAKA: 2,045,080.00 122,530.00 2,167,610.00 489,820.00 388,499.00 878,319.00 1,289,291.00
Balance as on 31.12.2015 1,558,780.00 486,300.00 2,045,080.00 - 489,820.00 489,820.00 1,555,260.00
115
Company Limited
Delta Life Tower
Plot # 37, Road # 90, Gulshan Circle-2, Dhaka-1212
Proxy Form
I/We ...................................................................................................................... of .............................................................
................................................................................................... being the shareholder(s), Delta Life Insurance Company
Limited hereby appoint Mr./Ms. ...................................................................................................................... failing which
Mr./Ms. ..................................................................................................... as my/our proxy to attend and vote for me/us and
on my/our behalf at the 31st Annual General Meeting of the Company to be held on Sunday, June 11, 2017 at 10:30 A.M.
at Delta Life Tower, Plot # 37, Road # 90, Gulshan Circle-2, Dhaka-1212 and at any adjournment thereof.
Signed this: ....................................................... Day of ........................................... 2017.
Signature of Proxy:
1) ................................................................... ..........................................................
Folio/BO ID No. ........................................... Revenue Signature of Shareholder(s)
stamp
Folio / BO ID No. ..........................
Tk. 20.00 No. of Shares .................................
2) ...................................................................
Folio/BO ID No. ...........................................
Note:
A member entitled to attend and vote at the 31st Annual General Meeting may appoint a proxy who must be a shareholder
of the Company to attend and vote in his/her stead. The proxy form, duly stamped, must be submitted at the Registered
Office of the Company not later than 48 hours before the time fixed for the AGM.
........................................................
Signature Verified
Delta Life Insurance Company Ltd.

Shareholders’ Attendance Slip
I/We hereby record my attendance at the 31st Annual General Meeting being held on Sunday, June 11, 2017 at 10:30 A.M.
at Delta Life Tower, Plot # 37, Road # 90, Gulshan Circle-2, Dhaka-1212 and at any adjournment thereof.
Name of the Shareholder(s)/Proxy ......................................................................................................................................

Folio/BO ID No. ............................................................................... Holding of ......................................... Ordinary Shares
of Delta Life Insurance Company Limited
Signature of Proxy :
1) ..............................................
................................................
Signature of Shareholder(s) 2) ..............................................
Notes:
1. Please note that the AGM can only be attended by the honorable shareholder or properly constituted proxy. Therefore
any friend or children accompanying honorable shareholder or proxy cannot be allowed into the meeting.
2. Please present this slip at the Reception Desk.
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Annual Report 2016

ASSOCIATES PRINTING PRESS
01924940765, 01790546716
Delta Life Tower, Plot # 37, Road # 90, Gulshan Circle-2, Dhaka-1212, Bangladesh
Telephone : 09613666000, 55051919, Fax : 88-02-8831739
Web : www.deltalife.org

DELTALIFE-Annual Report 2016

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DELTALIFE-Annual Report 2016

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Annual Report 2016

Delta Life Insurance Company Limited

Desctription Page No.

10 November 1986 Incorporation and Commencement of Business

17 December 1986 Signing of First Policy

February 1988 Launching of Grameen Bima

8 October 1993 Launching of Gono Bima

7 February 1994 Inauguration of Delta Care Hospitalisation Plan

13 September 1995 Listed in Dhaka Stock Exchange Ltd.

6 December 1995 Listed in Chittagong Stock Exchange Ltd.

March 2001 Membership of Global Network for Banking

4 January 2003 Gono-Grameen Bima Merged

10 November 2011 Silver Jubilee of the Company

07 July 2013 Incorporation and Commencement of Business of

(Chowdhury Qamrul Ahsan)

NOTICE OF THE 31ST ANNUAL GENERAL MEETING

Dated: Dhaka By order of the Board of Directors

Aziz Ahmed, FCA, CISA (USA) Independent Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Janata Bank Ltd. Rajshahi Krishi Unnuan Bank Citibank N.A.

Mercantile Bank Ltd. Agrani Bank Ltd. Dhaka Bank Ltd.

City Bank Ltd. Rupali Bank Ltd. Bank Asia Limited

Prime Bank Limited National Bank Ltd. Al-Arafah Bank Ltd.

Key Financial Indicators

(Amount in million BDT unless otherwise stated)

54. Number of First Year and Renewal Policies

* For a period of 8 (eight) years (2005-2012)

From The Desk of Chairman

Monzurur Rahman gbRyiæi ingvb

Directors’ Report 2016

Graphical Presentation of Business Performance

Group & Health Claim

Premium Income Premium & Claim

Five Years’ Financial Highlights (Consolidated):

Particulars 2016 2015 2014 2013 2012

First Year Premium 122.65 106.58 100.04 83.58 81.07

Renewal Premium 420.83 413.10 408.94 403.38 386.19

Group Insurance Premium 27.55 24.12 24.05 32.92 25.36

Health Insurance Premium 17.63 14.44 11.40 14.81 16.06

Gross Premium 588.66 558.24 544.43 534.69 508.68

Investment Income 288.77 310.13 300.92 267.98 232.76

Claims 488.72 424.60 394.66 347.67 284.29

b) Admin. Expenses 82.27 76.52 74.77 76.61 74.01

Total Management Expenses (a+b) 170.66 156.95 153.82 151.97 140.78

Assets 4,065.31 3,850.64 3,771.42 3,088.94 2,771.73

Life Fund 3,475.03 3,304.41 3,053.44 2,805.22 2,633.16

Claims to Premium (%) 83.02 76.06 72.49 65.02 55.89

Management Expenses to Premium (%) 28.99 28.12 28.25 28.42 27.68

Graphical Presentation of Business Performance

2012 2013 2014 2015 2016

Premium & Life Fund Assets

Contribution to National Exchequer: Going Concern:

Graphical Presentation of Business Performance

Life Fund Management

2012 2013 2014 2015 2016

The segment-wise or product wise (Excluding Application of IAS/BAS & IFRS/BFRS:

Fairness of Financial Statements: Management:

We have reviewed the compliance of conditions of the Corporate Governance

Md. Amirul Islam FCS, FCA

The pattern of Shareholding as on December 31, 2016